E7-5 Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost L07-2 Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units 2,000 Unit Cost $5 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year 5,000 3,000 4,000 6 8 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. FIFO LIFO Average Cost Ending inventory Cost of goods sold E7-12 Reporting Inventory at Lower of Cost or Market L07-4 Jones Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Net Realizable Quantity Unit Cost When Acquired Value (Market) Item on Hand (FIFO) at Year-End A 50 S 15 S 12 E BD 30 40 C 10 48 52 D 70 25 30 E 350 10 5 Required: Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by-item basis. Item Quantity Total Cost Total Market LCM Valuation A B 50 80 C 10 D 70 E 350 Tolal S $ 0 $ 0