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 informabion appoies fo the quesbions disployed befow] You have been given responsibility for oversecing a bank's small business loons division. The barik has included loan covenants reguiring a minimum current ratlo of 1.30 in al small business loans. When you ask which ingentory costing method the covenant assumes, the previous loans manaper gives you a blank look. To oxplain to him that a compaciy's inventory costing method is important, you present the followinn halanre sheet information. You ask the former loans manager to find amounts for (a), (b) (c), and (o) 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 flinaly purchased 4 units at a cost of $17 each. A yearend inventory count determined that 2 units are on hand. C7-1 (Algo) Part 2 2. Determine the amount for (b) using Weighted Average, and then casculote (b) through (o)