Today is January $2,2024.$ Furniture Ltd $($FL$)$ is a publicly traded wholesaler and is expecting to report a sizable

operating loss in $2023$ due to an economic downturn. One remaining accounting issue before year$-$end financial

statements can be finalized relates to a sizable inventory of dining tables that are becoming obsolete due to new

trends and designs in the market place. These tables were purchased at different times during $2023$ when ongoing

sales were continuing as follows:

$2023$ Per Unit Per Unit

Date Transaction Units Invoice Cost Selling Price

Jan $16$ Purchase $10$ $$200$ NA

Feb $10$ Purchase $15$ $$195$ NA

Feb $27$ Sale $5$ NA $$290$

Mar $1$ Purchase $9$ $$180$ NA

Mar $5$ Sale $4$ NA $$230$

In addition to the invoice cost, FL pays freight$-$in of $$10$ per table. Moreover, bank financing is sometimes used and

$$400$ interest was paid for table purchases in $2023.$ A periodic inventory system is used and all eligible costs are

capitalized into inventory in accordance with GAAP. When write$-$downs are required, the allowance method is used.

At December $31,2023,$ the Controller estimated the tables remaining in inventory could be sold for $$3,000$ in total

over the next $3$ months. Normally, a $3\%$ sales commission is given but for these tables a $7\%$ commission will be

offered. As an additional incentive, free shipping will be given to customers despite the company having to pay $$40$

per table for delivery.

REQUIRED

a$)$ Assuming FL applies FIFO costing method, what is the cost of tables inventory at December $31,2023?$

b$)$ Determine if a write down is required at Dec $31,2023$ showing the details of your work. If required, prepare the

write down JE and if not, explain why not required.

c$)$ If the weighted average method was used, would the operating loss be more, less or the same compared to FIFO?

Justify your answer but no calculations are required.