Part A $(8$ Marks$)$

The following data is available for one of the products sold by Chan Company for the month of April:

April

$1$

On hand, $10$ units at $$8$ each

$ $80$

$5$ Purchased $30$ units at $$8\mathrm{.}30$ each $249$

$18$ Purchased $40$ units at $$8\mathrm{.}50$ each $340$

$20$ Sold $75$ units for $$13$ each

$24$ Purchased $20$ units for $$8\mathrm{.}25$ each $165$

Chan Company$$s ending inventory for April was $25$ units.

Required:

Complete the following table by determining the amounts of the April $30$ inventory and cost of goods sold for April, under each of the inventory costing methods listed below. Assume that Chan Company uses a perpetual inventory system. $($Need not show calculations$)($Round to two decimals$).$

FIFO

Weighted Average

Cost of Goods Sold

$$710\mathrm{.}50$ $$695\mathrm{.}38$

Ending Inventory

$$136\mathrm{.}75$ $$151\mathrm{.}88$

Part B $(6$Marks$)$

Valley Inc. has compiled the following information concerning items in its inventory at December $31$:

Item Quantity Cost per Unit Net Realizable Value $($NRV$)$per unit

A $120$ $$45$ $$50$

B $70160120$

C $60100110$

Required:

$1.(4$ marks$)$The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value $($ LCNRV$)$ rule applied on an item by item basis is $($Need not show calculations$)$

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$2.(2$ marks$)$ Based on the above information, the loss due to inventory write down to LCNRV is: $($Need not show calculations$)$

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