5.40 Inventory Lavara Corp uses the perpetual inventory method with the following information available: Units Unit Cost Total Cost Jan. 1 Beginning inventory $5.80 $ 145 20 Purchase 324 21 Sale (sold for $19 each) July 25 Purchase 5.30 212 Oct. 20 Purchase 45 5.80 261 Nov. 15 Sale (sold for $15 each) Instructions: (Note: Blank Working paper is attached on the following page) You MUST show ALL CALCULATIONS in order to obtain full marks. No calculations = ZERO marks awarded. Answer the following independent and unrelated questions for Lavara's transactions (a) What is the value of Cost of Goods Available for sale at the end of November. ul & 8 8 8 6 b) How many units were available for sale during the year? (c) Assume that the company uses the FIFO cost formula. The cost of goods sold for the Jan 21 sale was How much gross profit was earned on this sale? (d) Assume that the company uses the FIFO cost formula. The value of the ending inventory after the October 20 purchase is le) Assume that the company uses the average cost formula. The cost of goods sold for the lan 21 sale was $ Use two decimal points only to calculate your average unit cost 1. Record the Journal entry for the Jan 21* sale under assumption (C) above Date Account title and explanation Dr (f) Assume that the company uses the perpetual average cost formula. The value of the inventory after the November 15 sale was $ _. Use two decimal spots to calculate your average unit cost. (g) Assuming the company uses the PERIODIC system, what would year end Inventory value be under: 2. AVERAGE costing method $