(Solved): Question IV (25 points) Fix-IT Inc., whose fiscal year ends on December 31, is a company that spec ...

Question IV (25 points) Fix-IT Inc., whose fiscal year ends on December 31, is a company that specializes in selling refurbished smartphones. It buys old and broken smartphones and resells the fixed smartphones. Assume that the beginning balance of its inventory for FY 2021 was 0. Below is its inventory purchase schedule for FY 2021: Date Unit Cost $50 Quantity 200 January 16, 2021 June 1. 2021 1, $40 180 August 31, 2021 $45 30 September 22, 2021 $35 120 December 3, 2021 $35 60 In addition, below is its sales transactions for FY 2021: Date Unit Price Quantity $70 150 May 9, 2021 November 21, 2021 $80 300 December 25, 2021 $75 70 Required: a. Assuming that Fix-IT Inc. adopts the LIFO perpetual inventory system, calculate the cost of goods sold for FY 2021. (10 points) b. Assuming that Fix-IT Inc. adopts the FIFO perpetual inventory system, calculate the cost of goods sold for FY 2021. (10 points) c. Assuming all other things equal, how would net income for FY 2021 differ under (a) and (b)? In other words, under which method would Fix-IT Inc. have a higher net income, and by how much? (5 points)