9-1 The ledger of Perez Company includes the following items: (a) Freight-in. (b) Purchase Returns and Allowances, (c) Purchases, (d) Sales Discounts, and (e) Purchase Discounts. Iden- tify the items that are included in inventoriable costs. 9-2 In its first month of operations Rusch BBQ made three purchases of sausages in the fol- lowing sequence: (1) 300 pounds at $6. (2) 400 pounds at $7, and (3) 200 pounds at $8. Assum- ing there are 450 pounds on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Rusch uses a periodic inventory system. ry 9-3 Data for Rusch BBQ are presented in 9-2. Compute the cost of the ending inventory un- der the average-cost method, assuming there are 450 pounds on hand. 9-4 The management of Muni Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provide the highest net income? (b) provide the highest ending inventory? (c) result in the lowest income tax expense? (d) result in the most stable earnings over a number of years? 9-5 Farr Company reports net income of $90,000 in 2008. However, ending inventory was un- derstated $5,000. What is the correct net income for 2008? What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2008, 9-6 On December 31, 2008, the following information was available for Simon Hotels: ending inventory $40,000; beginning inventory $60,000; cost of goods sold $300.000; and sales revenue $380,000. Calculate inventory turnover and days in inventory for Simon Hotels