Jan. 1Beginning inventory10$20$200Mar. 51st purchase1022220Sept. 92nd purchase1025250Dec. 83rd purchase103030040$970

There are 10 units of inventory on hand on December 31.

1.Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods:

a.FIFO

$

b.Weighted-average (round calculations to two decimal places.)

$

2.Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:

a.FIFO lower-of-cost-or-market

$

b.Weighted-average lower-of-cost-or-market

$

Feedback

FIFO assumes that the oldest units have been sold and the newest or freshest units are in the ending inventory.

Weighted average is determined by dividing the total cost of units available for sale by the total number of units available for sale.

Calculate ending inventory at market and determine which amount should be shown on the company's balance sheet.

3.What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average?

If no entry is required, select "No Entry Required".

a.Loss on Write-Down of Inventory$

Merchandise Inventory $

b.No Entry Required

No Entry Required