SYD HASAN CPA ACCT 330 CH 6 DEMO PROBLEM P1 Inventory Methods Given below is data for the Zee Company for the current year: Cost per Unit $20 $22 $23 Units Item Beginning Inventory 1/1 Purchase 2/1 Purchase 8/1 1 7 2 $40 3 Sales 3/1 $40 3 Sales 9/1 Assume that the firm uses the Periodic System of maintaining inventory, compute ending inventory and cost of goods sold under each of the following methods: A. Specific Identification: The units sold were as follows; Beginning Inventory 1 unit, Purchase on 2/1 4 units and Purchase on 8/11 unit. B. FIFO C. LIFO D. Weighted Average P2: Lower of Cost or Net Realizable Value Given below is data for the Max Company on 12/31: Cost Market $40 $35 $50 $52 Item Quantity A 1 The firm uses the Lower-of-Cost or Net Realizable Value on Compute the value of the Ending Inventory on 12/31 and give any adjusting entry that the firms should make. an item-by-item basis. P3: Inventory Error Analysis Celina Company reported the following on 12/31 of the following years: 2014 2015 $30K Pretax Income $21K An audit determined that there were two errors in inventory as follows: 2014 $15K $14K 2015 $18K $16K El Reported El Actual Compute the correct pretax income for 2014 and 2015 Page 1 of 1