The following data relate to Fay Ltd, a company that buys and sells only one product:

Date Transaction May 1 1000 units on hand at $6 per unit 2 Purchased 1200 units for $7 per unit 11 800 units were sold for $7.50 per unit 22 900 units were purchased for $7.50 per unit 30 1100 units were sold for $8.00 per unit 1 Calculate the cost of ending inventory and the COGS, assuming:

a a perpetual system using the LIFO cost flow assumption b a periodic system using the weighted average method.

2 Assume that, at the end of the month, you discover that the net realisable value of each item is $6.50.

Calculate and prepare the journal entry to adjust inventory records, if required, assuming:

a perpetual system using the LIFO cost flow assumption b periodic system using the weighted average method.