The following are data available for Blue Grass for the month of June (using perpetual inventory system):

Beginning inventory 300 units @2.00

Purchase 600 units @2.10

400 units @2.20

500 units @2.30

Sales (made at the end of the month) 1,200 units

1. Calculate cost of goods sold and ending inventory under the following cost flow assumptions: (1) Weighted average; (2) FIFO; (3) LIFO and prepare the corresponding journal entries.

2. Assume net income using the weighted average cost-flow assumption was $6,400. Calculate net income under FIFO and LIFO.

3. NRV (net realizable value) of the ending inventory is @$1.90/unit. Assuming the use of weighted average method, prepare the journal entry for the inventory write-down (the management determines that the write-down is not material).