York Co. sells one product, which it purchases from various

York Co. sells one product, which it purchases from various suppliers. York’s trial balance at December 31, 2021, included the following accounts:

Sales (33,000 units @ $16) ..................$528,000
Sales discounts ..........................................7,500
Purchases ..............................................368,900
Purchase discounts ................................18,000
Freight-in ..................................................5,000
Freight-out .............................................11,000

York Co.’s inventory purchases during 2021 were as follows:

Cost per Unit Total Cost $ 53,900 Units Beginning inventory Purchases, quarter ended March 31 Purchases, quarter ended J

Additional Information:
a. York’s accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value, applied to total inventory. Cost is determined under the first-in, first-out (FIFO) method.
b. York has determined that, at December 31, 2021, the net realizable value was $8.00 per unit.


Required:
1. Prepare York’s schedule of cost of goods sold, with a supporting schedule of ending inventory. York includes inventory write-down losses in cost of goods sold.
2. Determine whether inventory should be reported at cost or net realizable value.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...