Cost Allocation and Lower$-$of$-$Cost$-$or$-$Market

Douglas Company's beginning inventory and purchases during the fiscal year ended December $31,20--,$ were as shown.

Units Unit Price Total Cost

January $1,20--$ Beginning inventory $1,080$ $ $8\mathrm{.}20$ $ $8,856$

March $51$st purchase $9109\mathrm{.}208,372$

April $162$nd purchase $4209\mathrm{.}704,074$

June $33$rd purchase $68010\mathrm{.}407,072$

August $184$th purchase $58011\mathrm{.}106,438$

September $135$th purchase $80012\mathrm{.}109,680$

November $146$th purchase $42013\mathrm{.}905,838$

December $37$th purchase $50013\mathrm{.}956,975$

$5,390$ $ $57,305$

There are $1,000$ units of inventory on hand on December $31.$

Required:

$1.$ Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December $31$ under each of the following methods:

Cost of Goods Sold Cost of Ending Inventory

a$.$ FIFO $fill in the blank $1$

$fill in the blank $2$

b$.$ LIFO $fill in the blank $3$

$fill in the blank $4$

c$.$ Weighted$-$average $($round calculations to two decimal places$)$ $fill in the blank $5$

$fill in the blank $6$

$10,630$

$2.$ Assume that the market price per unit $($cost to replace$)$ of Douglas's inventory on December $31$ was $$13.$ Calculate the total amount to be assigned to the ending inventory on December $31$ under each of the following methods:

a$.$ FIFO lower$-$of$-$cost$-$or$-$market $fill in the blank $7$

b$.$ Weighted$-$average lower$-$of$-$cost$-$or$-$market $fill in the blank $8$

$3.$ Prepare required entries to apply:

a$.$ FIFO lower$-$of$-$cost$-$or$-$market

b$.$ Weighted$-$average lower$-$of$-$cost$-$or$-$market

If no entry is required, select $"$No Entry Required".

Description Debit Credit