$2.$ The following information pertains to Mason Company for Year $2.$

Beginning inventory

$148$ units @ $$46$

Units purchased

$422$ units @ $$69$

Ending inventory consisted of $58$ units. Mason sold $512$ units at $$138$ each. All purchases and sales were made with cash. Operating expenses amounted to $$3,975.$

b$.$ What is the amount of net income using FIFO, LIFO, and weighted average? $($Ignore income tax considerations.$)$

$3.$ The Shirt Shop had the following transactions for T$-$shirts for Year $1,$ its first year of operations.

January $20$

Purchased $500$ units @ $ $7=$

$$3,500$

April $21$

Purchased $300$ units @ $$9=$

$2,700$

July $25$

Purchased $380$ units @ $$12=$

$4,560$

September $19$

Purchased $190$ units @ $$14=$

$2,660$

During the year, The Shirt Shop sold $1,110$ T$-$shirts for $$23$ each.

Required

a$.$ Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: $(1)$ FIFO, $(2)$ LIFO, and $(3)$ weighted average.

$4.$ The following inventory transactions apply to Green Company for Year $2.$

January $1$

Purchased $240$ units @ $$10$

April $1$

Sold $120$ units @ $$19$

August $1$

Purchased $430$ units @ $$11$

December $1$

Sold $538$ units @ $$20$

The beginning inventory consisted of $170$ units at $$11$ per unit. All transactions are cash transactions.

Required

Record these transactions in general journal format assuming Green uses the FIFO cost flow assumption and keeps perpetual records.

Compute cost of goods sold for Year $2.$

$5.$ The Hat Store had the following series of transactions for Year $2.$

Date

Transaction

Description

January $1$

Beginning inventory

$60$ units @ $$22\mathrm{.}00$

March $15$

Purchased

$220$ units @ $$26\mathrm{.}00$

May $30$

Sold

$150$ units @ $$26\mathrm{.}00$

August $10$

Purchased

$240$ units @ $$27\mathrm{.}00$

November $20$

Sold

$345$ units @ $$43\mathrm{.}50$

Required

a$.$ Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records.

$6.$ The following information pertains to Hagen Metal Works$$ ending inventory for the current year.

Item

Quantity

Unit Cost

Unit Market Value

C

$310$

$$12$

$$8$

D

$300$

$14$

$11$

K

$80$

$10$

$14$

M

$77$

$7$

$10$

Required

Determine the value of the ending inventory using the lower$-$of$-$cost$-$or$-$market rule applied to $(1)$ each individual inventory item and $(2)$ the inventory in aggregate.

Prepare any necessary journal entries, assuming the decline in value is immaterial, using the $(1)$ individual method and $(2)$ aggregate method. Hagen Metal Works uses the perpetual inventory system.

$7.$ Brooks Company carries three inventory items. The following information pertains to the ending inventory.

Item

Quantity

Unit Cost

Unit Market Value

A

$180$

$$9$

$$8$

F

$235$

$13$

$12$

K

$176$

$6$

$9$

Required

Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower$-$of$-$cost$-$or$-$market rule to individual inventory items.

Prepare the necessary journal entry, assuming the decline in value was immaterial.