a. 26. Which of the following statements is true regarding how cost of goods sold is determined under the perpetual inventory system using LIFO? The units sold are multiplied by the first costs in inventory. b. The units sold are multiplied by the last costs in inventory. c. Multiply the units in ending inventory by the last costs in inventory. This amount is subtracted from cost of goods available for sale. d. The cost of goods available for sale is divided by total units to get an average cost which is multiplied by units sold. 27. The following information was taken from the records of Bob's Bikes: Market Value per Unit Item A B Quantity 50 20 10 Cost per Unit $12 20 10 $ 9 21 5 Bob's reports inventory at the lower of cost or market (applied individually). The necessary adjusting entry would a. reduce assets and equity by $200. b. increase assets and equity by $1,100. c. reduce assets and equity by $180. d. reduce assets and increase liabilities by $200. 28. Taylor Company uses the periodic inventory method and wants to estimate the amount of ending inventory in order to prepare quarterly financial statements. Sales for the quarter were $26,000. Based on historical records, the company earns an average gross margin of 25 percent on sales. Beginning inventory for the quarter was $7,000 and purchases were $14,200. The amount of ending inventory was $6,500. b. $1,700. $21,200. d. $19,500. a. C