1. Widgets Inc., a company that sells only one type of widget, had a beginning inventory in September of 11 units, at $200/unit. Throughout the first two weeks, they purchased additional inventory in the amount of 5 widgets at $209/widget and 9 widgets at $220 a piece. During the third week, they sold 12 widgets at $420/each.

Required:

If replacement cost fell to $205 in October, and the company is using FIFO, what is the adjustment that would be made to the Inventory account?

2. Your company had a beginning inventory of $109,500 and purchased $240,720 during the accounting period.

Required: Assuming no returns, find the goods available for sale, the cost of goods sold, the inventory turnover ratio, and days to sell for the company if its ending inventory was $94,820.