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Question 1 (15 points) Below is a statement of inventory for a candle shop, given on January 31. a a) Calculate the lower of cost or net realizable value for the inventory, applied separately to each product, and by inventory group. Cost NRV LCNRV applied to Total for Total for Product Quantity product Items Group product Red Scented Candles Red Votive Candles 7.75 Red Unscented Candles Green Scented Candles 7.90 Blue Sand Candles 9.85 10.20 Per Unit Per Unit 8.70 14 20 28 25 20 8.05 8.45 8.85 8.40 9.40 Totals b) Prepare any required adjusting entry assuming LCNRV is applied to each item. Dates must be entered in the format dd/mmm (15/Jan). Leave the entry blank if no adjusting entry is required. General Journal Account/Explanation Page GJS Credit Date F Debit c) Prepare any required adjusting entry assuming LCNRV is applied to the whole group. Dates must be entered in the format dd/mmm (15/Jan). Leave the entry blank if no adjusting entry is required. Date General Journal Account/Explanation Page GJ8 F Debit Credit Question 3 (14 points) The Vision Consulting Inc. company has the following purchases and sales during the year ended December 31, 2014. Inventory and Purchases Beginning: 400 units @ $56/unit February 7: 400 units @ $53/unit October 30: 150 units @ $48/unit Sales September 3: 200 units December 2: 300 units The units have a selling price of $65.00 per unit. a) Please fill in the table by calculating the dollar value of cost of goods sold and ending inventory, as well as the gross profit earned by Vision Consulting Inc. using the FIFO system. FIFO Cost of Goods Sold Ending Inventory Gross Profit b) Prepare journal entries to record the following (assuming all sales and purchases are for cash): (a) The purchase on October 30, (b) The sale on December 2. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie. 15/Jan). Date General Journal Account/Explanation Page GJS Credit F Debit + +