Billie's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Billie's Tennis Shop uses a periodic inventory system. Transactions Beginning inventory Purchase Date August 1 Units 8 Unit Cost Total Cost $142 $1,136 August 4 Sale ($135 each) 5 August 11 10 132 1,320 August 13 August 20 August 26 August 29 Sale ($150 each) Purchase 8 10 122 1,220 Sale ($160 each) Purchase 11 12 112 1,344 $5,020 For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase. Required: 1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? 7. If Billie's chooses to report inventory using LIFO, record the LIFO adjustment. A home improvement store, like Lowe's, carries the following items: Inventory Items Quantity Hammers 120 Unit Cost $6.60 Unit NRV $7.10 Saws 40 9.60 8.60 Screwdrivers 120 1.60 2.20 Drills 30 24.60 21.20 One-gallon paint cans Paintbrushes 150 170 5.10 5.60 4.60 6.10 Required: 1. Compute the total cost of inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value, and then place that unit amount in the "Lower of Cost and NRV per unit" column. Multiply the quantity of each inventory item by the appropriate cost or NRV unit amount and place the total in the "Total" column. 3. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. Required information [The following information applies to the questions displayed below.] Trends by Tabitha sells high-end leather purses. The company has the following inventory transactions for the year. Date January 1 April 9 October 4 Transactions Beginning inventory Purchase Purchase January 1 to December 31 Sales Required: 1. Using FIFO, calculate ending inventory and cost of goods sold. Ending inventory Cost of goods sold Units 14 Unit Cost $360 Total Cost $5,040 16 380 6,080 17 410 6,970 47 $18,090 38 Required information [The following information applies to the questions displayed below.] Trends by Tabitha sells high-end leather purses. The company has the following inventory transactions for the year. Date January 1 April 9 October 4 Transactions Beginning inventory Purchase Purchase January 1 to December 31 Sales 2. Using LIFO, calculate ending inventory and cost of goods sold. Units 14 Unit Cost $360 Total Cost $5,040 16 380 6,080 17 410 6,970 47 $18,090 38 Required information [The following information applies to the questions displayed below.] Trends by Tabitha sells high-end leather purses. The company has the following inventory transactions for the year. Date January 1 April 9 October 4 Transactions Beginning inventory Purchase Purchase January 1 to December 31 Sales Units 14 16 Unit Cost $360 380 Total Cost $5,040 6,080 17 410 6,970 47 $18,090 38 Because trends in purses change frequently, Trends by Tabitha estimates that the remaining five purses have a net realizable value at December 31 of only $210 each. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value under FIFO. 3-b. Record any necessary adjusting entry under FIFO.