1. February 1: The company purchases new equipment for $30,200. The company also pays $200 for shipping the equipment and $500 for equipment installation. The equipment is assumed to have a $1,000 salvage value and 6 years of useful life.
2. March 3: The company sells a customer 21 desktop computers at $515 each. Assume that the company uses a LIFO cost flow assumption, and that the companys inventory before the sale had 15 desktop computers that cost $340 each from September 20X1 and 18 computers that cost $350 each from November 20X1.
3. March 31: The company uses an LCM method (individual-item level) to check for obsolete inventory and records any adjustment needed with the cost method. Assume that there are 41 tablets in ending inventory costing $250 each, having a replacement cost of $280 each, having an NRV of $230 each, and having an NRV minus normal profit of $200 each.