Dizzy Lizzy, an entrepreneurial fortune teller, also sells tarot cards as a profitable sideline to her highly successful telephone clairvoyant service. The following information relates to transactions concerning inventory for the year 1 January 2016 to 31 December 2016.

1. Assuming that a perpetual system of inventory flow is used, calculate the COGS and closing inventory for:

a. FIFO

b. LIFO.
2. You estimate that in the current market the net realisable value of tarot cards is $5 per unit. Do you need to make any adjustments to either of your calculations above to apply the lower of cost and net realisable value rule? If so, calculate the adjustment.

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Date Purchased Sold Balance 1/1/16 110 @ $5 10/2/16 80 @ $6 14/4/16 60 9/5/16 110 @ $7 24/7/16 120 21/10/16 100 @ $8 12/11/16 90 Total 290 270