Inventory Costing Methods Neyman Inc. has the following data for purchases and sales of inventory: Date Units Cost per Unit Beginning inventory 22 $400 Purchase 1, Feb. 241 130 370 Sale 1 145 Purchase 2, July 2 180 330 Purchase 3, Oct. 31 90 250 Sale 2 2651 All sales were made at a sales price of $450 per unit. Assume that Neyman uses a perpetual inventory system. Required: Compute the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Cost of ending inventory Cost of goods sold FIFO LIFO Average Cost Lower of Cost or Market Shaw Systems sells a limited line of specially made products, using television advertising campaigns in large cities. At year end, Shaw has the following data for its inventory: Historical Cost Item Number of Selling Price Disposal Units per Unit per Unit Costs Phone 625 $241 $25 $5 Stereo 180 177 200 10 Electric shaver 215 30 31 3 MP3 alarm clock 450 26 27 2 Handheld game system 570 40 45 Required: 1. Compute the carrying value of the ending inventory using the lower of cost or net realizable value rule applied on an item-by-item basis. 2. Prepare the journal entry required to value the inventory at lower of cost or net realizable value. If an amount box does not require an entry, leave it blank. 88