1. Journal EntriesPerpetual Inventory

Joan Ziemba owns a small variety store. The following transactions took place during March of the current year.

Mar. 3	Purchased merchandise on account from City Galleria, $2,910.
7	Paid freight charge on merchandise purchased $215.
13	Sold merchandise on account to Amber Specialties, $3,560. The cost of the merchandise was $2,340.
18	Received a credit memo from City Galleria for merchandise returned, $690.
22	Issued a credit memo to Amber Specialties for merchandise returned, $580. The cost of the merchandise was $340.

Journalize the transactions in a general journal using the perpetual inventory method. If an amount box does not require an entry, leave it blank.

2.

Lower-of-Cost-or-Market

Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:

		Units	Unit Price		Total Cost
Jan. 1	Beginning inventory	10	$21		$210
Mar. 5	1st purchase	10	22		220
Sept. 9	2nd purchase	10	25		250
Dec. 8	3rd purchase	10	30		300
		40			980

There are 10 units of inventory on hand on December 31.

For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent.

1. Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods:

a. FIFO $

b. Weighted-average $

2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:

a. FIFO lower-of-cost-or-market $

b. Weighted-average lower-of-cost-or-market $