CS-1 LO1 3 7 Monrose Park had the following transactions during the month of November 2018. Purchased 1,000 widgets for $20 per unit on credit Sold 900 widgets for $55 each for cash Purchased 500 widgets for $25 per unit on credit Nov 2 Nov 5 Nov 10 Nov 18 Sold 100 widgets for $60 each on credit Sold 300 widgets for $50 each for cash Nov 29 Monrose Park uses a perpetual inventory system and the FIFO inventory valuation method. There we wwidgets in the company's opening inventory for November. vere no Required a) Record the above transactions in the general journal. Date Account Title and Explanation Debit Credit Inventory Valuation b) Prepare the schedule to calculate ending inventory after the above transactions. Purchases Balance Sales Date Quantity Unit Cost Value Quantity Unit Cost Value Quantity Unit Cost Value Nov 1 Nov 2 Nov 5 Nov 10 Nov 18 Nov 29 Ending Inventory c) Calculate the value of merchandise inventory using the lower of cost and net realizable value (LCNRV). LCNRV Applied to Description Category NRV Individual Cost Category Widget A Widgets $3,000 $2,300 Widget B 2,000 Widgets 3,300 Total Widgets Total d) Record the journal entry to adjust the value of merchandise inventory to the lower of cost and net realizable value based on individual items using the results from c). Debit Credit Accou nt Title and Explanation Date e) Prepare an excerpt of the multiple-step income statement for the month showing sales revenue, cost of goods sold, and gross profit. Inventory Valuz $68,500. Using the gross profit method, estimate - Chapter 8 Sales for December were $100,000 and purchases were f) closing value of inventory. Assume the gross profit margin from November will be the gross profit margi for December. $100,000 Sales Revenue Cost of Goods Sold Opening Inventory 68,500 Purchases Cost of Goods Available for Sale Closing Inventory Cost of Goods Sold Gross Profit