Esperado Furnishings are retailers who purchase and sellhousehold furnishings, including table lamps. The business uses aperpetual inventory system and adjusts cost of goods sold for anyshortage or excess inventory. The business began the last quarterof 2018 with merchandise inventory of 10 pairs of “Italia” tablelamps at a total cost of $168,200.

The following transactions, relating to the “Italia” brand werecompleted during the quarter: October 5 Purchased 15 pairs of lampsat a cost of $17,020 per pair. October 14 Sold 18 pairs of lamps toMuller Furnishings at $22,250 per pair October 22 Purchased 24pairs at a cost of $18,175 per pair but the supplier gave a 4%quantity discount. November 10 Sold 15 pairs of lamps to OrionHousehold Ltd and 10 pairs to Brown’s Furnishings which yieldedtotal sales revenue of $589,750. November 12 Owing to an increaseddemand for this product, 30 pairs of lamps were purchased onaccount at a cost of $17,612 per pair. In addition, Esperado paid$288 in cash on each pair of lamps to have the inventory shippedfrom the vendor’s warehouse to Esperado’s showroom. November 27Sold 23 pairs of lamps to Middletown Company at a price of $25,080per pair. November 30 An actual count of inventory was carried outwhich revealed that there were 15 pairs of the “Italia” brand inthe warehouse. December 2 In preparation for the festive season,Esperado purchased 25 pairs of lamps at a total cost of $474,500.December 15 5 pairs of the lamps purchased on December 2 werereturned to the supplier, as they were not of the brand ordered.December 30 Sold 22 pairs of lamps to two customers (Omega Traders& Middleton Furnishings) at a selling price of $26,550 perpair. All purchases were on account and received on the datesstated. Required:

1. iv) Assuming that Esperado sold 86 pairs of “Italia” brand oflamps during the quarter; determine the value of ending inventoryand cost of goods sold assuming the business used the periodicsystem and the LIFO method? (5 m