MERCHANDISING AND INVENTORY Merchandise inventory calculation: FOB and consigned goods Carlee 0/5 On December 31, Collins Company had an ending inventory of $103,500 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available: (a) Inventory items with a cost of $2,210 were included in ending inventory. These goods were on consignment to Carter Company. They had not yet been sold. (b) Inventory items with a cost of $3,110 were excluded from ending inventory. These goods were in transit from Brooks Company to Collins Company and were purchased FOB shipping point. (c) Inventory items with a cost of $2,800 were excluded from ending inventory. These goods were in transit from Collins Company to Roberts Company and were sold FOB destination. Required: Using the information given above, compute the correct final balance of Inventory. Correct ending inventory balance: C MERCHANDISING AND INVENTORY = Merchandise inventory: Lower of cost or market method Allen Company had the following inventory at the end of the year: Unit Price Quantity Cost Market Valves: Model Q 140 $11 $13 Model R 110 7 5 Model S 180 9 11 Gaskets: Model Alpha 60 80 85 Model Beta 50 90 95 Model Gamma 30 100 95 Allen Company uses the lower of cost or market method (LCM) to value its inventory. Required: Determine the cost of ending inventory by using the lower of cost or market method applied to each category of inventory. Cost of Ending Inventory: $ 0/5 MERCHANDISING AND INVENTORY = Use of periodic inventory system for merchandise inventory... Diaz Company had the following inventory information for the year ending December 31: Carle 0/5 Beginning Inventory Purchases: March 3 June 15 September 28 Cost of Goods Available for Sale Units Unit Cost Total 155 $7 $280 10 450 11 220 12 600 $1,550 On December 31, Diaz Company had an ending inventory of 60 units. They use a periodic inventory system to compute the cost of ending inventory. Required: Using LIFO: (a) Compute the cost of ending inventory (b) Compute the cost of goods sold Cost of ending inventory: Cost of goods sold: $ $