7. Inventory Costing Methods and the Periodic Method

McKay & Company experienced the following events in March:

Date	Event	Units		Unit Cost	Total Cost
Mar. 1	Purchased inventory	100	@	$20	$2,000
Mar. 3	Sold inventory	60
Mar. 15	Purchased inventory	100	@	$23	$2,300
Mar. 20	Sold inventory	40

If McKay & Company uses the weighted-average cost method, calculate the companys cost of goods sold and ending inventory as of March 31 assuming the periodic method.

(Round answer to two decimal places, if needed.)

8. Lower-of-Cost-or-Market (LCM) Method The following data are taken from the Browning Corporation's inventory accounts:

Item Code	Quantity	Unit Cost	Replacement Cost
ACE	100	$42	$41
BDF	300	47	48
GHJ	400	37	35
MBS	200	40	44

Calculate the value of the company's ending inventory using the lower-of-cost-or-market method applied to each item of inventory.

9.

Inventory Turnover and Days' Sales in Inventory The Southern Company installed a new inventory management system at the beginning of 2012. Shown below are data from the company's accounting records as reported out by the new system:

	2012	2013
Sales Revenue	$8,000,000	$10,000,000
Cost of Goods Sold	4,000,000	4,900,000
Beginning Inventory	600,000	630,000
Ending Inventory	630,000	700,000

Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2012 and 2013. Round your answer to two decimal points.

10.

The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory:

July	1	Beginning inventory	47	units @	$80	per unit
	10	Purchased	67	units @	$90	per unit
	15	Sold	77	units @
	26	Purchased	42	units @	$100	per unit

Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.