Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kikis records show the following for the month of January. Sales totaled 320 units.

	Date	Units	Unit Cost	Total Cost
Beginning Inventory	January 1	180	$ 70	$ 12,600
Purchase	January 15	490	80	39,200
Purchase	January 24	280	100	28,000

Required:

Calculate the number and cost of goods available for sale.

Calculate the number of units in ending inventory.

Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.

Orion Iron Corporation tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

Transactions	Units	Unit Cost
a. Inventory, Beginning	450	$ 10
For the year:
b. Purchase, April 11	900	8
c. Purchase, June 1	750	18
d. Sale, May 1 (sold for $38 per unit)	450
e. Sale, July 3 (sold for $38 per unit)	680
f. Operating expenses (excluding income tax expense), $19,700

Required:

1. Calculate the number and cost of goods available for sale.

2. Calculate the number of units in ending inventory.

3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost.

4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method.

6. Which inventory costing method minimizes income taxes?

Miller North Company is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):

	2017	2018
Net Sales Revenue	$ 3,600	$ 3,060
Cost of Goods Sold	2,780	2,300
Average Inventory	370	310

Required:

1-a. Calculate the inventory turnover ratio for 2018 and 2017.

1-b. Calculate the average days to sell inventory for 2018 and 2017.

2. Did inventory turnover at Miller North improve or decline in 2018?

3. Calculate the 2018 gross profit percentage.

4. The main competitor for Miller North is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was 3.3 and its gross profit percentage was 3.9 percent. Why was Arctic Cat more likely than Miller North to require a write-down for LCM/NRV?