York Co. sells one product, which it purchases from various suppliers. York’s trial balance at December 31, 2024, included the following accounts:

York Co.’s inventory purchases during 2024 were as follows:

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, 2024, 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.

Transcribed Image Text:

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