Lowder Company purchased 275 units of inventory on account for $5,775. Due to some defects in the merchandise, Lowder received a $2 per unit allowance and paid only $5,225. Lowder then sold 150 units for cash at $55 each, purchased an additional 65 units for cash at a cost of $1,430, and then sold 100 more units for cash at $55 each. Lowder uses a periodic inventory system.
Required
a. Prepare all journal entries to record Lowder's purchases of inventory.
b. Compute Lowder's cost of goods sold and ending inventory under the FIFO, LIFO, and weighted average inventory costing methods. For the weighted average method, round all values to the nearest cent.