The following information, taken from EFG, a shop selling parts to plumbers, describes the inventory account. Assume the company only sells two types of products, Product A and Product B.

Question:

1. For 2019, use the FIFO method to calculate Ending Inventory and COGS for Product A and Product B before considering any value decrease.

2. For 2019, use the LIFO method to calculate Ending Inventory and COGS for Product A and Product B before considering any value decrease.

3. Assume EFG has used FIFO for its inventory accounting. On Dec 31, 2019, EFG found the market value of Product A has dropped to $10 per unit, while the market value of Product B remains at $12 per unit. Determine the journal entry on December 31^, 2019 to recognize the decrease of values in ESGs inventory.

4. Assume EFG has used LIFO for its inventory accounting. On Dec 31, 2019, EFG found the market value of Part A has dropped to $10 per unit, while the market value of Part B remains at $12 per unit. Determine the effect of the market price drop on Product A on ESGs COGS and net income in 2019.

5. Compute the total Sales Revenue and Gross income for 2019 under both the FIFO and LIFO methods.

1. The following information, taken from EFG, a shop selling parts to plumbers, describes the inventory account. Assume the company only sells two types of products, Product A and Product B. Product A 1,200 7004 Inventory, Jan. 1 2019- Purchase 6/30/19 Purchase 10/20/194 Sales in 2019 Price per unit ($) 102 124 132 18+ 400 1,800 Inventory, Jan. 1 2019- Purchase 6/30/19 Purchase 10/20/19 Sales in 2019 Product Be 2002 400 800 1,2004 Price per unit($) 42 64 8 12 Required: 1. For 2019, use the FIFO method to calculate Ending Inventory and COGS for Product A and Product B before considering any value decrease. (3 points)