Fialka Company’s beginning inventory and purchases during the fiscal year ended October 31, 20-2, were as follows:

There are 1,600 units of inventory on hand on October 31, 20-2.

REQUIRED 

1. Calculate the total amount to be assigned to cost of goods sold for the fiscal year and ending inventory on October 31, 20-2, under each of the following periodic inventory methods:

(a) FIFO

(b) LIFO

(c) Weighted-average cost (round calculations to two decimal places)

2. Assume that the market price per unit (cost to replace) of Fialka’s inventory on October 31, 20-2, was $29. Calculate the total amount to be assigned to the ending inventory on October 31, 20-2, under each of the following methods:

(a) FIFO lower-of-cost-or-market

(b) Weighted-average lower-of-cost-or-market 

3. Assume that a fire destroyed Fialka’s store and all inventory on October 31, just prior to taking a physical inventory. Thus, Fialka must estimate the ending inventory and cost of goods sold. During the fiscal year ended October 31, 20-2, net sales of $134,000 were made. The normal gross profit rate is 40%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended October 31, 20-2, and the inventory on October 31, 20-2.

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Unit Total Units Price Cost November 1, 20-1 November 12, 20-1 Beginning inventory 500 $25.00 $ 12,500 1st purchase 600 26.25 15,750 December 28, 20-1 2nd purchase 400 27.50 11,000 March 29, 20-2 3rd purchase 1,000 28.00 28,000 May 31, 20-2 4th purchase 750 28.50 21,375 July 29, 20-2 5th purchase 350 29.00 10,150 August 30, 20-2 6th purchase 675 30.00 20,250 October 21, 20-2 7th purchase 225 31.00 6,975 4,500 $126,000