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 300 units.

	Date	Units	Unit Cost	Total Cost
Beginning Inventory	January 1	200	$ 70	$ 14,000
Purchase	January 15	340	80	27,200
Purchase	January 24	260	100	26,000

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	400	$ 12
For the year:
b. Purchase, April 11	850	10
c. Purchase, June 1	750	14
d. Sale, May 1 (sold for $40 per unit)	400
e. Sale, July 3 (sold for $40 per unit)	670
f. Operating expenses (excluding income tax expense), $18,600

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?

Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows:

Required:

1-a. Complete the table column Write-Down per Item and then sum the final column.

1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.

2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.

Alligator armories. Unit cost 49 NRV per item 35. Quantity on hand 55

Bear Bureaus Same order. 22,22,35

Cougar Credenzas 27, 31,40

Dingo Cribs 28,28,25

Elephant dressers 49,47,10