Problem #$4$: Inventory Review Problem:

A$.$ Ironside Co$.$ reported the following data for its purchases and sales of inventory during $2022$ below

on the left. On the right, the company reports the effect of each transaction on the inventory ledger

account:

Other notes:

LIFO reserve has a credit balance of $$75$ the beginning of the period

The estimated selling price was $$21$ at year end with selling costs of $$1\mathrm{.}50,$ both per unit. The

expected gross profit of the inventory is $$9$ a unit. The current replacement cost of inventory is

$$19.$

Provide COGS assuming a LIFO perpetual cost method and a FIFO perpetual cost method

$($you$\text{'}$re solving for the $???$ amounts because the reduction to inventory is the same as COGS$).$

Provide the adjustment required to LIFO reserve if the company uses FIFO for its internal record$-$

keeping and reports its financial results in LIFO.

Provide the test required to determine the lower of cost or market$/$NRV for both LIFO and FIFO

methods. Is a write$-$down required? $($note: you're assessing the entire inventory for write$-$down$).$ Please Provide Step by Step Instruction as well as appropriate solutions for each queston point!!