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