The Manuel Corporation sells household appliances and uses UFO for inventory costing. The inventory contains 10 different products, and historical LIFO layers are maintained for each of them. The LIFO layers for one of the products, Easy Chef, were as follows at December 31, 2001:

Instructions:
1 . What was the value of the ending inventory of Easy Chefs at December 31 , 2001 ?
2. How did the December 31 , 2001 , quantity of Easy Chefs compare with the December 31, 2000, quantity?

3. What is the value of the ending inventory of Easy Chefs at December 3 1 , 2002, if there are 11, 200 units on hand?
4. How would net income in (3) be affected if, in addition to the quantity' on hand, 1,250 units were in transit to Manuel Corporation at December 31. 2002? The shipment was made on December 26, 2002, terms FOB shipping point. Total invoice cost was \($131,250.\) Ignore income taxes.

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2000 layer 1995 layer 4,000 @ $90 3,500 @ $85 1991 layer 1989 layer $75 1,000 3,000 @ $52