27.1 (Algo) Computing and Evaluating Financial Statement Effects of Alternathe laventory Costing Me thods (Chapters 2 and 7 ] [LO 2.5, LO 7-3] ifveritary costing motheg is importart, you present the fol owisa bodange sheet ingormatiso. of $17 eoch A yeor and imwentory cocint determined thst 2 uver ore on hand C7.1 (Algo) Part 3 Required information C7-1 (Algo) Computing and Evaluating Financial Statement Effects of Alternative Inventory Costing Methods (Chapters 2 and 7) [LO 2-5, LO 7-3] [The following information applies to the questions displayed below.] You have been glven responsibility for overseeing a bank's small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.30 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a company's inventory costing method is important, you present the following balance sheet information. You ask the former loans manager to find amounts for (a),(b), (c), and (d) assuming the company began the year with 3 units of inventory at a unit cost of $12, then purchased 6 units at a cost of $13 each, and finally purchased 4 units at a cost of $17 each. A year-end inventory count determined that 2 units are on hand. 3. Determine the amount for (a) using LIFO, and then calculate (b) through (d)