The following information is obtained from Rapid Corporation's financial records:

Units Unit Cost Total Cost

Jan. 1 Beginning inventory 100 $10 $ 1,000

Mar. 1 Purchased 400 $12 $ 4,800

Mar. 5 Sold (250)

May 2 Purchased 100 $15 $ 1,500

Aug. 1 Sold (150)

Oct. 3 Purchased 100 $25 $ 2,500

Dec 31 Ending inventory 300 ? ?

(per physical count)

(1) Calculate the cost of the ending inventory, under the assumption that the company uses a perpetual inventory system and the moving-average method for costing inventory. (Calculate the unit price to two decimal places).

(2) Calculate the cost of the ending inventory, under the assumption that the company uses a periodic inventory system and the FIFO method for costing inventory.

(3) Using the answer to part (2):

(a) necessary year-end adjusting entries (you should have two entries) to account for the fact that the ending inventory had a total Market Value of $4,000. The company uses the allowance (indirect) method to apply the Lower of Cost and NRV model and the opening inventory had a NRV of $800.

(b) income statement for the company for the year ended December 31, 2019 assuming a selling price of $30 per unit and operating expenses of $4,500. Remember to use proper financial statement format!