Question #1:

A record of transactions for the month of May is as follows:

Purchases Sales

May 1 (balance) 400 @ $4.00 May 3 300 @ $7.00

4 1,300 @ $4.10 6 1,000 @ 7.00

8 800 @ $4.30 12 900 @ 7.50

14 700 @ $4.40 18 400 @ 7.50

22 1,200 @ $4.50 25 1,400 @ 8.00

29 500 @ $4.75

Assuming that perpetual inventory records are kept in dollars, calculate the ending inventory using FIFO.

Question #2:

The December 31, 2019 inventory of Draper Inc. consisted of four products, for which certain information is provided below:

Replacement Estimated Expected

Product Original Cost Cost Disposal Cost Selling Price

A $29.00 $22.00 $6.50 $40.00

B $44.00 $40.00 $8.00 $48.00

C $145.00 $125.00 $25.00 $190.00

D $21.00 $15.80 $3.00 $28.00

Required:

Using the lower of cost and NRV approach applied on an individual-item basis, calculate the inventory valuation that should be reported for each product on December 31, 2019.