ANSWER QUESTION $2$:

Question $1$: Sproul Inc. had the following inventory information for the year:

Inventory at January $140$ unit@$ $3$ each

Inventory Purchases$$ February $20$ unit@$ $4$ each

$$August$20$ unit@$ $5$ each

$$November $10$ unit@$ $6$ each

Inventory Sales$$ March $30$ units

$$October $40$ units

Sproul uses the perpetual system. Assuming that there is no shrinkage, calculate COGS and ending inventory at December $31$ under the $($a$)$ FIFO, $($b$)$ LIFO and $$ average cost methods $($ Round to the nearest cent$).$

GAFS units$=40$units $+20$units $+20$units $+10$ units$=90$ units

Units Sold$=30$ units$+40$ units$=70$ units.

Units in Ending Inventory$=90$ units $-70$ units$=20$units

FIFO COGS$=(40*$$$3)+(20*$$$4)+(10*5$$$)=$$$250$

FIFO EI$=(10*$$$6)+(10*$$$5)=\%110$

LIFO COGS $=[(20*$$$4)+(10*$$$3)]+[(20*$$$5)+(20*$$$3)]=$ $$270$

LIFO EI$=(10*$$$6)+(10*$$$3)=$ $$90$

March$$ Average Cost$/$Unit$=[(40*$$$3)+(20*$$$4)]/[40+20]=$ $$3\mathrm{.}33/$ unit

March$$ COGS$=30*$$$3\mathrm{.}33=$ $$100$

March$$ Inventory Balance$=30*3\mathrm{.}33=$ $$100$

$$October $$ Average Cost$/$Unit$=[$$$100+(20*$$$5)]/[30+20]=$ $$4\mathrm{.}00/$unit

$$October $$ COGS$=40*$$$4\mathrm{.}00=$$$160$

$$October $$ Inventory Balance$=10*$$$4\mathrm{.}00=$$$40$

$$

$$Total COGS$=$ $$100+$$$160=$ $$260$

$$December $31$ Ending Inventory$=$ $$40+(10*$$$6)=$ $$100$

$$

$$COGS $12040*$$$3$

$$Inventory $120$

$$COGS$240$

$$Purchases $240(20*$$$4)+(20*5$$$)+(10*$$$6)$

$$Inventory$57$

$$COGS $5719*$$$3$

Question $2$: Information from the previous question for Sproul Inc.:

Inventory at January $140$ unit@$ $3$ each

Inventory Purchases$$ February $20$ unit@$ $4$ each

$$August$20$ unit@$ $5$ each

$$November $10$ unit@$ $6$ each

Inventory Sales$$ March $30$ units

$$October $40$ units

Now assume that Sproul $($previous question$)$ uses LIFO costing and that Sproul$$s December $31($year$-$end$)$ inventory count revealed $19$ units in ending inventory. Prepare all necessary year$-$end adjusting journal entries made for inventory on December $31$ under the periodic recording method.