PART I--During its first year of operations, Richmond Company, using a periodic inventory system, made undiscovered errors in taking its year-end inventory that overstated Year 1 ending inventory by $150,000. Required: What is the effect (Over/Understate) of these errors on reported net incomes for Years 1 and 2? PART II- The following inventory was available for sale during the year for Tower Tools: ......... Beginning inventory First purchase Second purchase Third purchase ... 10 units at $160 15 units at $220 30 units at $280 20 units at $260 Tower Tools has 25 units on hand at the end of the year. Required: 1. Compute ending inventory using the first-in-first-out method. 2. Compute cost of goods sold using FIFO PART III-- The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Quebec, Inc. for an operating period. Units Units Sold Unit Cost $ 54 Total Cost $1,728 Beginning Inventory Sale No. 1 Purchase No. 1 Sale No. 2 Purchase No. 2 Totals 1.680 1.140 $4,548 Required: 1. Assuming Quebec, Inc, uses LIFO periodic inventory procedures, compute cost of goods sold and ending inventory. 2. Assuming Quebec, Inc. uses weighted average (periodic) inventory procedures, the ending inventory cost is what amount? PART IV-- The weighted average cost method is used by Jose, Inc. Sales are $240,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted- average cost of the goods available for sale is $600 each. Required: How much is gross profit for the company? PART V-- Allen Company's inventory at December 31, 2017, based on a physical count of all goods in the company's warehouse, was $1,250,000. Additional information follows: 1. Merchandise held on consignment by Allen as consignee amounted to $155,000. 2. Merchandise in transit to customers on December 31, 2017, shipped FOB shipping point, amounted to $34,000. 3. Retailers were holding $210,000 of merchandise on consignment from Allen, the consignor. 4. Goods were in transit, FOB shipping point, from a vendor to Allen on December 31, 2017. The cost of the goods was $25,000. 5. A freight bill of $2,000 relating to merchandise purchased in 2017 was received in January 2018. All of the merchandise was still in inventory on December 31, 2017. The freight bill was not included in ending inventory. Required: Compute corrected December 31, 2017 inventory