Question 1 (8 marks) At the beginning of November, KKL Inc.'s inventory consists of 50 units with a cost per unit of $100. The following transactions occur during the month of November. Nov. 2 Purchase 80 units of inventory on account from Kong Inc. for $110 per unit, terms 2/10,n/30. The amount is paid within the discount period. Nov. 3 Pay freight charges related to the 2 November purchase, \$240. Nov. 9 Return 20 defective units from the 2 November purchase and receive credit. (No credit for the already paid freight charges.) Nov. 16 Sell 100 units of inventory to customers on account, $14,000. The cost of units sold from the 2 November purchase includes $110 unit cost plus $4 per unit for freight less $2.20 per unit for the purchase discount, or $111.80 per unit. Nov. 21 Purchase 70 units of inventory from Kong Inc. for $120 per unit, terms 1/10,n/30. The amount is not paid within the discount period. Nov. 24 Sell 50 units of inventory to customers for cash, $9,000. Required: (1) Assuming that KKL Inc. uses a FIFO perpetual inventory system to maintain its internal inventory records. What is the ending inventory and costs of goods sold at the end of November? (2) Suppose by the end of November that the remaining inventory is estimated to have a net realizable value per unit of $90, record any necessary adjustment for the lower of cost and net realizable value