USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (4) QUESTIONS: Sparky, Inc. began the month of May with 2,600 units of Product X on hand at a cost of $10 per unit. During the month of May, the following transactions affecting inventory occurred:

Date	Transaction	Units @ $Cost/Selling Price per unit
May 3	Purchase	2,000 units @ $10.50
May 6	Sale	1,200 units @ $15
May 15	Purchase	5,000 units @ $11.00
May 20	Sale	5,500 units @ $15
May 21	Purchase	4,000 units @ $11.50
May 30	Sale	2,300 units @ $15

7. a. If Sparky uses Perpetual LIFO, determine Ending Inventory at LIFO Cost as of May 31st: $[Blank_8]

Sparky currently uses U.S. GAAP and applies Lower-of-Cost-or-Market to report their ending inventory. Due to some rapidly changing market conditions, the replacement cost of Product X at May 31st is $9.90 per unit. The estimated selling price of Product X at May 31st is $15.00 per unit. Based on past experience, the company estimates disposal cost to be $4 per unit. For the last several months, Sparky's normal profit has held constant at 30% of selling price. 8. (b) After applying LCM, determine the ending inventory value Sparky should report on their balance sheet dated May 31st: $[Blank_9]

Using the information presented in #7 and #8 above, determine the following:

9. (c) After applying LCM, determine the Loss on Inventory Decline (if any): $[Blank_10] *If there is a loss, simply report the dollar amount. You do not need to use a (-) sign or ( ) parenthesis. For example, if Sparky should report a $1,000 loss, record your answer as 1000. If Sparky did not have to write down their inventory, record your answer as 0 (i.e. use the numeric character for zero)

Using the information presented in #7 and #8 above, determine the following:

10. (d) Sparky is considering adopting IFRS reporting standards, and if adopted, would determine the cost of their inventory using periodic FIFO. Using the same cost & market data as presented above, what should Sparky report for the Loss on Inventory Decline as of May 31st under IFRS after applying LCNRV?

*If there is a loss, simply report the dollar amount. You do not need to use a (-) sign or ( ) parenthesis. For example, if Sparky should report a $1,000 loss, record your answer as 1000. If Sparky did not have to write down their inventory, record your answer as a zero (i.e. 0)