Computation/Analysis Cork Co. sells one product, Product A, which it purchases from various suppliers. Corks partial trial balance at December 31 included the following accounts: Sales (39,000 units @ $17) $663,000 Sales discounts 9,500 Purchases 437,100 Purchase discounts 22,000 Freight-in 6,000 Freight-out 12,000 Inventory purchases during the year were as follows: Units Cost per Unit Total Cost Beginning inventory 1/1 10,000 8.30 83,000 Purchases, quarters ended March 31 14,000 7.35 116,900 June 30 17,000 8.00 136,000 September 30 15,000 7.60 114,000 December 31 9,000 7.80 70,200 65,000 520,100 Additional information: Corks accounting policy is to report inventory in its financial statements at the lower of cost or market, applied to total inventory. Cost is determined under the last-in, first-out (LIFO) method. Cork has determined that, at December 31, the replacement cost of its inventory was $8.20 per unit and the net realizable value was $9.00 per unit. Corks normal profit margin is $1.10 per unit. Cork maintains inventory on a periodic method. Prepare Corks cost of goods sold, with a supporting schedule of ending inventory. Cork uses the direct method of reporting losses from any market decline of inventory. Schedule of Cost of Goods Sold Beginning inventory Less: Ending Inventory Cost of Goods Sold Schedule of Ending Inventory Units Cost per Unit Total Cost Beginning inventory Purchases quarter ended Ending Inventory Item Net Realizable Value (Ceiling) Net Realizable Value less Normal Profit (Floor) Designated Market Cost Lower of Cost or Market Product A Journal Entry (if any) Accounts DR CR