The following data relates to Fay Ltd, a company that buys and sells only one product:

1. Calculate the cost of ending inventory and the COGS, assuming:

a. A perpetual system using the LIFO cost flow assumption 

b. A periodic system using the weighted average method. 

2. Assume that, at the end of the month, you discover that the net realisable value of each item is $6.50. Calculate and prepare the journal entry to adjust inventory records, if required, assuming: 

a. Perpetual system using the LIFO cost flow assumption. 

b. Periodic system using the weighted average method.

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Date May 1 2 11 22 30 Transaction 1000 units on hand at $6 per unit Purchased 1200 units for $7 per unit 800 units were sold for $7.50 per unit 900 units were purchased for $7.50 per unit 1100 units were sold for $8.00 per unit