.Inventory Valuation & Analysis:Given the following inventor…
.Inventory Valuation & Analysis:Given the following inventory transactions, compute FIFO, LIFO, and Average Cost for ending inventory and cost of goods sold (COGS) under the periodic inventory system: Beginning inventory: 120 units @ $11Purchases: 180 units @ $13100 units @ $14Sales: 120 units on March 590 units on June 1540 units on October 10Complete the following table for periodic inventory calculations:Inventory MethodEnding Inventory ($)COGS ($)FIFOLIFOAverage CostNow, please explain how the calculations would differ under the perpetual inventory system and describe when a company might prefer one method over the other.