1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

4. Compute gross profit earned by the company for each of the four costing methods in part 3.

Use the gross profit method to estimate the companys first quarter ending inventory.

Inventories & Cost of Sales Homework Handout PROBLEM 6-9 (page 292 in Fundamental Accounting Principles, 23 ed.) The records of Alaska Company provide the following information for the year ended December 31. At Cost At Retail January 1 beginning inventory 469,010 Cost of goods purchased Sales Sales returns 928,950 6,381,050 5,595,800 42,800 3,376,050 Required: 1. Use the retail inventory method to estimate the company's year-end inventory at cost. 2. A year-end physical inventory at retail prices yields a total inventory of $1,686,900. Prepare a calculation showing the company's loss from shrinkage at cost and at retail. PROBLEM 6-10 (page 292 in Fundamental Accounting Principles, 23 ed.) Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 34%. The following information for the first quarter is available from its records. January 1 beginning inventory Cost of goods purchased Sales Sales returns 302,580 941,040 1,211,160 8,410 Required Use the gross profit method to estimate the company's first quarter ending inventory