1. In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 400 units at $7 on January 1, (2) 600 units at $10 on January 8, and (3) 930 units at $11 on January 29. Assume 1,130 units are on hand at the end of the month.

1. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the (a) FIFO,(b) LIFO, and (c) weighted average cost flow assumptions. Assume perpetual inventory system and sold 800 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)

	FIFO	LIFO	Weighted Average Cost
Goods Available for Sale
Cost of Goods Sold
Ending Inventory

2. Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows:

Item	Quantity on Hand	Unit Cost When Acquired (FIFO)	Market Value at Year-End	LCM per Item	Total LCM	Recorded Total Cost
Alligator Armoires	90	$32	$27			$2,880
Bear Bureaus	95	90	90			8,550
Cougar Credenzas	20	100	102			2,000
Dingo Cribs	45	45	45			2,025
Elephant Dressers	420	20	17			8,400

Compute the amount that should be reported for the ending inventory using the LCM rule applied to each item.

3. Prepare the journal entry that Peterson Furniture Designs would record on December 31 to write-down its inventory to LCM. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)