solution 15-2A

sold by three inventory cost methods ending inventory and the cost of goods West TV uses the periodic inventory system. Data for beginning inventory and purchases for three models follow; Directions: 1. Determine the cost of the entire ending inventory, assuming costing by (a) FIFO; (b) LIFO; and (c) weighted-average. 2. The cost of goods available for sale for the three models is $141,284. Determine the cost of goods sold for the year, using each method. PROBLEM 15-2A Objective: To apply the rule of lower of cost or market (LCM) to inventory raluation Dowling Company values its merchandise inventory by the lower of FIFO cost or market. It applies the rule of LCM on an item-by-item basis. Data for three products follows: Directions: 1. Calculate the value of the ending inventory of each product at FIFO cost. 2. Calculate the value of the ending inventory of each product at market. 3. Apply the rule of LCM to determine the value to report for the ending inventory on the financial statements