You are given the following information for Carla Vista Company. All transactions are settled in cash. Carla Vista uses a perpetual inventory system and the weighted average cost formula. Increased competition has reduced the price of the product.

Date		Transaction		Units				Unit Price
July 1		Beginning inventory			25			$19
5		Purchase			55			18
8		Sale			(70)			29
15		Purchase			55			17
20		Sale			(55)			26
25		Purchase			10			16

1.Prepare the required journal entries for the month of July for Carla Vista Company.

2.Determine the ending inventory for Carla Vista.

3.

On July 31, Carla Vista Company learns that the product has a net realizable value of $17 per unit. Prepare the journal entry, if required, to recognize the decrease in value of this product. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

4.

What amount should the ending inventory be valued at on the July 31 balance sheet? What amount should the cost of goods sold be valued at on the July income statement? (Round answers to 2 decimal places, e.g. 5,275.50.)

Ending inventory		$
Cost of goods sold		$