For the current year, Parker Games has the following inventory transactions related to its traditional board games.

Required:

1. Using FIFO, calculate ending inventory and cost of goods sold.

2. Using LIFO, calculate ending inventory and cost of goods sold.

3. Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 100 units of unsold inventory to be $500. Determine the amount of ending inventory to report using lower of cost and net realizable value under FIFO. Record any necessary adjustment.

Transcribed Image Text:

Date Transaction Units Unit Cost Total Cost Jan. 1 Beginning inventory 120 $21 $2,520 Mar. 12 Purchase 90 16 1,440 Sep. 17 Purchase 60 540 270 $4,500 Jan. 1-Dec. 31 Sales 170