2 Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.) Case A Case B Case C Net sales revenue 7,640 6,040 2.5 points Beginning inventory $ 11,090 S 6,660 3,860 Purchases 4,970 9,400 00:59:00 Goods available for sale 15, 170 13,260 Ending inventory 10,200 10,910 Cost of goods sold 4.430 Gross profit 1,310 Expenses 290 630 Pretax income (loss) 1,490 (400) 9803 Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 2, 000 $ 5 For the current year: 2.5 Purchase, March 21 6,000 points Purchase, August 1 4,000 Inventory, December 31, current year 3,000 00:58:31 Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. FIFO LIFO Average Cost Ending inventory Cost of goods sold4 Sanchez Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Quantity Unit Cost When Net Realizable Value Item on Hand Acquired (FIFO) (Market) at Year-End 2.5 A 35 $ 20 $ 15 points 70 49 45 50 60 62 25 37 32 00:58:09 Required: 1. Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. 2. What will be the effect of the write-down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December 31, current year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Lower of Item Quantity Total Cost Realizable Cost or Value NRV A 35 B 70 C 50 D 25 Total 0 $ 0 $ 0 Required 1 Required 2 What will be the effect of the writedown of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December 31, current year?