Lower-of-Cost-or-Market

Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:

UnitsUnit PriceTotal CostJan. 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

$

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.

b.