Hurst Company’s beginning inventory and purchases during the fiscal year ended December 31, 20-2, were as follows:

REQUIRED

1. Calculate the total amount to be assigned to the cost of goods sold for 20-2 and ending inventory on December 31 under each of the following periodic inventory methods:

(a) FIFO

(b) LIFO

(c) Weighted-average (round calculations to two decimal places)

2. Assume that the market price per unit (cost to replace) of Hurst’s inventory on December 31 was $18. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:

(a) FIFO lower-of-cost-or-market

(b) Weighted-average lower-of-cost-or-market

3. In addition to taking a physical inventory on December 31, Hurst decides to estimate the ending inventory and cost of goods sold. During the fiscal year ended December 31, 20-2, net sales of $100,000 were made at a normal gross profit rate of 35%. Use the gross profit method to estimate the cost of goods sold for the fiscal year ended December 31 and the inventory on December 31.

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Units Unit Price Total Cost January 1, 20-2 January 12 February 28 June 29 August 31 October 29 $10.00 $15,000 5,750 8,700 18,000 13,200 5,400 12,950 8,000 $87,000 1,500 500 Beginning inventory 1st purchase 2nd purchase 3rd purchase 4th purchase Sth purchase 6th purchase 7th purchase 11.50 14.50 15.00 16.50 600 1,200 800 300 18.00 November 30 December 21 700 18.50 400 20.00 6,000 There are 1,200 units of inventory on hand on December 31, 20-2. Units Unit Price Total Cost January 1, 20-2 January 12 February 28 June 29 August 31 October 29 $10.00 $15,000 5,750 8,700 18,000 13,200 5,400 12,950 8,000 $87,000 1,500 500 Beginning inventory 1st purchase 2nd purchase 3rd purchase 4th purchase Sth purchase 6th purchase 7th purchase 11.50 14.50 15.00 16.50 600 1,200 800 300 18.00 November 30 December 21 700 18.50 400 20.00 6,000 There are 1,200 units of inventory on hand on December 31, 20-2.