Easy Gen Company's inventory records contained the following information regarding its latest generator model. The company uses a periodic inventory system.

Beginning inventory, January 1, 2020640units @ $75 eachPurchases:January 151,410units @ $90 eachJanuary 211,150units @ $95 eachJanuary 281,310units @ $100 eachEnding units1,140

Required:

Compute the ending inventory for January using the LIFO method.

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Question 10

4pts

On December 31, 2020, Duncan Inc. estimated the cost of inventory under the average cost method to be $187,600 and the net realizable value of inventory to be $179,000. The company has not previously recorded a holding loss on inventory.

a. Prepare the journal entry to record the holding loss on inventory using an allowance account to reduce inventory and cost of goods sold to adjust expense.

b. Prepare the journal entry to record the holding loss on inventory using an allowance account to reduce inventory and a separate loss account to adjust equity.

Account NameDRCRab