FIFO, LIFO, lower of cost and net realisable value Dizzy Lizzy, an entrepreneurial fortune teller, also sells tarot cards as a profitable sideline to her highly succesfiul telephone clairvoyant service. The following information relates to transactions concerning inventory for the year 1 January 2016 to 31 December 2016. Date Purchased Sold Balance 110 @ $5 80 @ $6 10/2/16 14/4/16 9/5/16 24/7/16 21/10/16 12/11/16 Total 60 110@ $7 120 100 @ $8 90 290 270 Assuming that a perpetual system of inventory flow is used, calculate the COGS and closing inventory for a FIFO b LIFO. You estimate that in the current market the net realisable value of tarot cards is $5 per unit. Do you need to make any adjustments to either of your calculations above to apply the lower of cost and net realisable value rule? If s calculate the adjustment. 1 2