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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 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 1,110 $ 8.20 $ 9,102
March 5 1st purchase 890 9.20 8,188
April 16 2nd purchase 390 9.70 3,783
June 3 3rd purchase 690 10.40 7,176
August 18 4th purchase 600 11.10 6,660
September 13 5th purchase 810 12.10 9,801
November 14 6th purchase 390 14.20 5,538
December 3 7th purchase 480 14.25 6,840
5,360 $ 57,088

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

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
a. fill in the blank 10 fill in the blank 11
fill in the blank 13 fill in the blank 14
b. fill in the blank 16 fill in the blank 17
fill in the blank 19 fill in the blank 20

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