QUESTION 1.

QUESTION 2.

(Appendix 6B) Inventory Costing Methods: Periodic Average Cost Bordeaux Company has the following information related to purchases and sales of one of its inventory items: Assume that Bordeaux uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) Lower of Cost or Net Realizable Value The accountant for Davidson, Inc. prepared the following analysis of its inventory at year end