Question 1: Kayla Company uses the perpetual inventory system and the LIFO method. The following information is available for the month of June: June 1 Beginning inventory 200 units @ $5 12 Purchase on account 400 units@ $6 15 Sales on account 440 units 23 Purchase on account 300 units @ $7 27 Sales on account 360 units The selling price (price the company charged the customers) was $10 per unit. a) Show the calculation of cost of goods sold and ending inventory under LIFO. b) What is the amount of Sales Revenue? C) Prepare a journal entry for the sale of inventory on June 15. d) In which financial statement does the amount of ending inventory appear? e) in which financial statement do the amount of sales and arount of cost of goods sold appear? f) What is the amount of gross margin for month June? g) What is the gross margin percentage? Question 2: The controller of Alt Company is applying the lower-of-cost-or-net realizable value basis of valuing its ending inventory. The following information is available: Net Realizable Value Cost $14,800 19,000 33,800 $17,000 18,000 35,000 Lawnmowers: Self-propelled Push type Total Snowblowers: Manual Self-start Total Total inventory 29,800 19,000 48,800 $82,600 31,000 21,000 52,000 $87,000 Compute the value of the ending inventory by applying the lower-of-cost-or-NRV. Show your work. Question 3: The management of Svetlana Corp. is considering the effects of inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: a. Provide the highest net income, LIFO or FIFO? b. Provide the highest ending inventory, LIFO or FIFO? c. Result in the lowest income tax expense, LIFO or FIFO