16. The following information is available for Massey Company: Beginning inventory 600 units at $5 First purchase 900 units at $6 Second purchase 500 units at $7 Assume that Massey uses a periodic inventory system and that there are 700 units left at the end of the month. Instructions Compute each of the following under the average-cost method: (a) Cost of ending inventory. (b) Cost of goods sold. Solution cost/unit = $5.95 $11,900 = 2,000) 600 x $5 = 900 x $6 = 500 x $7 = 2.000 $ 3,000 5,400 3,500 $11.900 (a) Cost of ending inventory = $4,165 (700 * $5.95) (b) Cost of goods sold = $7,735 (1,300 * $5.95) or $11,900 - $4,165 17. Compute the lower-of-cost-or-net realizable value valuation for Aber Company's total inventory based on the following: Inventory Categories Cost Data Net Realizable Value Data A $18,000 $17,600 B 14,000 14,600 21,000 20,500 Solution Net Realizable Inventory Categories Cost Data Value Data LCNRV A B Total Valuation