A retailer uses the perpetual inventory and weighted average cost to value its inventory and cost of goods sold. The business recorded the following inventory transactions during the month of May.

Purchases Sales

Unit Unit cost Unit. Unit Price

May 1 Beginning Inventory 85 90

3 Purchase 130 95

10 Sale 90 130

19 Purchase 40 110

29 Sale 110. 120

a) Use the weighted average cost method to calculate the cost of goods sold and ending inventory for May. Calculate weighted average cost per unit to the nearest a penny ($0.01) and calculate inventory and cost of goods sold to the nearest dollar ($1).

b) At year end, the net realizable value of the ending inventory is $92 per unit. Prepare the resulting adjusting entry.