You have been given responsibility for overseeing a banks small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.3 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a companys inventory costing method is important, you present the following balance sheet information.

Current assets other than inventory	$	32
Inventory		(a	)
Other (noncurrent) assets		147
Total assets	$	(b	)
Current liabilities	$	50
Other (noncurrent) liabilities		65
Stockholders equity		(d	)
Total liabilities and stockholders equity	$	(c	)

You ask the former loans manager to find amounts for (a), (b), (c), and (d) assuming the company began the year with 3 units of inventory at a unit cost of $12, then purchased 6 units at a cost of $13 each, and finally purchased 4 units at a cost of $17 each. A year-end inventory count determined that 2 units are on hand.

1a.	Determine the amount for (a) using FIFO, and then calculate (b) through (d).

Inventory: Total Assets: Total Liabilities and Stockholders' Equity: Stockholders' Equity

1b.) Determine the amount for (a) using weighted averages, and then calculate (b) through (c)

Inventory: Total Assets: Total Liabilities and Stockholders' Equity: Stockholders' Equity