1. West Co. recorded the following inventory information during the month of February:

	Units	Unit cost	Total cost	Units on Hand
Balance on 2/1	800	$2	$1,600	800
Purchased on 2/8	1,000	$3	$3,000	1,800
Sold on 2/14	1,500			300
Purchased on 2/17	2,000	$1	$2,000	2,300
Sold on 2/23	1,600			700
Purchased on 2/28	800	$4	$3,200	1,500

West uses the LIFO method to cost inventory. What amount should West report as inventory at the end of February under each of the following methods of recording inventory?

Perpetual: $4,200, Periodic: $3,700.

Perpetual: $3,700, Periodic: $3,700.

Perpetual: $3,700, Periodic: $4,200.

Perpetual: $4,200, Periodic: $4,200.

2.

A fire destroyed most of the inventory in Micks warehouse on September 1. After the fire, Micks accounting records showed the following:

Inventory, January 1	$ 55,000
Purchases, January 1 through September 1	$310,000
Sales, January 1 through September 1	$370,000
Inventory not damaged by fire	$ 45,000
Gross profit percentage on sales	30%

What amount of inventory was lost in the fire?

$259,000

$61,000

$106,000

$55,000

3. The original cost of an item of inventory is above its replacement cost. The items replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at

Net realizable value

Original cost

Replacement cost

Net realizable value less normal profit margin