You are provided with the following information for Amelia Inc., which purchases its inventory from a supplier for cash and has only cash sales. Amelia uses the average cost formula in a perpetual inventory system. Increased competition has recently reduced the price of the product.

Instructions
(a) Prepare all journal entries for the month of April for Amelia, the buyer. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
(b) Determine the ending inventory amount for Amelia.
(c) On April 30, Amelia learns that the product has a net realizable value of $50 per unit. What amount should ending inventory be valued at on the April statement of financial position?

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Date Explanation Apr. 1 Beginning inventory50 110 (130) 120 (120) 20 6 Purchases 8 Sales 15 Purchases 20 Sales 27 Purchases Units Unit Cost/Price $ 8o 90 120 0 100 60