Problem $3$: Inventory

A$.$ Cost Flow Assumptions

Tranco Company began operations in $2025.$ Tran purchased the following units:

$7,000$ units were sold in $2025$ as follows:

$3,500$ on July $1$

$3,500$ on November $1$

Calculate the December $31,2025,$ ending inventory value using the Perpetual LIFO

method.

Calculate the December $31,2025,$ cost of goods sold value using the Periodic FIFO

method.

B$.$ Retail Inventory

Edna's General store has the following information available for $2025$:

Calculate the December $31,2025,$ inventory using the $(1)$ conventional $($average$/$lower of cost or

market$)$ method and $(2)$ dollar value retail LIFO method.

$(1)$ Conventional Average, Lower of cost or market

$(2)$ Dollar Value Retail LIFO $($assume price index of $1\mathrm{.}05)$