Question 1

Part 1

Jillstrap Sporting Goods started April with an inventory of 10 sets of golf clubs that cost a, total of $1,500. During April, Jillstrap purchased 20 sets of clubs for $3,200. At the end of the month, Jillstrap had six sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold and ending inventory under these two accounting methods, assuming the periodic system is used.

1. Weighted-average cost
2. FIFO

Part 2

It is December 31, 2022, end of year, and the controller of Glamourous Corporation is applying the lower-of-cost-and-net-realizable-value (LCNRV) rule to inventories. Before any year end adjustments Glamourous has these data:

Cost of goods sold ................................................................................................. $410,000

Historical cost of ending inventory, as determined by a physical count ............................................... 60,000

Glamourous determines that the net realizable value of ending inventory is $49,000. Show what Glamourous should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.