Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	40 units at $122
Mar. 10	Purchase	60 units at $130
Aug. 30	Purchase	30 units at $134
Dec. 12	Purchase	70 units at $138

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Ending Inventory and Cost of Goods Sold
Inventory Method	Ending Inventory	Cost of Goods Sold
First-in, first-out (FIFO)	$	$
Last-in, first-out (LIFO)
Weighted average cost

Lower-of-Cost-or-Market Inventory

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10.

Product	Inventory Quantity	Cost Per Unit	Market Value per Unit (Net Realizable Value)
Class 1:
Model A	42	$204	$187
Model B	25	207	203
Model C	23	198	191
Class 2:
Model D	28	283	288
Model E	32	204	188

a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory.

Inventory at the Lower of Cost or Market
Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
Model A		$	$	$	$	$
Model B
Model C
Model D
Model E
Total				$	$	$

b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory.

Inventory at the Lower of Cost or Market
Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
Class 1:
Model A		$	$	$	$
Model B
Model C
Subtotal				$	$	$
Class 2:
Model D				$	$
Model E
Subtotal				$	$
Total				$	$	$

c. Determine the value of the inventory at the lower of cost or market applied to total inventory.

Inventory at the Lower of Cost or Market
Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
Model A		$	$	$	$
Model B
Model C
Model D
Model E
Total				$	$	$

Inventory turnover and number of days sales in inventory

Financial statement data for years ending December 31 for Tango Company follow:

	20Y7	20Y6
Cost of goods sold	$3,811,330	$4,080,700
Inventories:
Beginning of year	795,700	773,800
End of year	861,400	795,700

Required

a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place.

	20Y7	20Y6
Inventory turnover

b. Determine the number of days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place.

	20Y7	20Y6
Number of days sales in inventory	days	days

c. Are the changes in inventory turnover and the number of days sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?