3. using the lower-of-cost-or-market rule, determine the proper unit value for balance sheet reporting purposes at Dec 31,2014, for each of the inventory items above.

4. compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales.

5. compute the ending inventory as indicated below. Round calculations to 3 decimal places.

a.) ending inventory using conventional retail inventory method

b.) ending inventory using LIFO retail inventory method

3. (6 points) Afniction Company uses LIFO for inventory costing purposes, and therefore uses the lowerof-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, and G. Relevant per-unit data for these products appear below. Instructions Using the lower-of-cost-or-market rule, determine the proper unit value for balanee sheet reporting purposes at December 31, 2014, for each of the inventory items above. 4. (4 points) Hornacek Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Instructions Compute the estimated inventory at May 31 , assuming that the gross profit is 30% of sales. 5. (5 points) The records of Air Bud's Boutique report the following data for the month of Aprit. Compute the ending inventory as indicated below. Round calculations to 3 decimal places. a. Ending inventory using conventional retail inventory method b. Ending inventory using LIFO retail inventory method