Required:

Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item$-$by$-$item basis.

What will be the effect of the write$-$down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December $31,$ current year?

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Required $1$

Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item$-$by$-$item basis.

$\backslash$table$[[$Item$,$Quantity,Total Cost,$\backslash$table$[[$Total Net$],[$Realizable$],[$Value$]],\backslash$table$[[$Lower of$],[$Cost or NRV$]]],[$A$,38,,,],[$B$,73,,,],[$C$,53,,,],[$D$,28,,,],[,$Total,,,$]]$

E$7-9($Algo$)$ Evaluating the Cholce among Three Alternative Inventory Methods Based on Cash Flow Effects LO$7-2,7-3$

Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods. assuming the use of a periodic inventory system:

Required:

Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods.

Prepare an income statement through pretax income for each method.

Sales, $322$ units; unit sales price, $$54$; Expenses, $$1,500$

$3.$ Rank the three methods in order of income taxes paid $($favorable cash flow$).$

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Required $1$

Required $2$

Required $3$

Compute cost of goods sold under the FIFO, LIF, and average cost inventory costing methods.

Note: Round intermediate calculations to $2$ decimal places. Round your answers to the nearest whole dollar amount.

$\backslash$table$[[,$FIFO,UFO,$\backslash$table$[[$Average$],[$Cost$]]],[$Cost of goods sold$],[$Beginning inventory $(384$ units @ $$26),$$$,0,084,s,9,004,s,0\mathrm{.}084],[$Purchases $(475$ units @ $$34),,16,150,,16,150,,16\mathrm{.}150],[$Goods available for sale$],[$Ending inventory $(537$ units$)],[$Cost of goods sold,,,,,,$]]$