You are provided with the following information for Amelia Inc., which purchases its inventory from a supplier for cash and has only cash sales. Amelia uses the average cost method in a perpetual inventory system. Increased competition has recently reduced the price of the product.

Instructions
(a) Prepare all journal entries for the month of April for Amelia, the buyer. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
(b) Determine the ending inventory amount for Amelia.
(c) On April 30, Amelia learns that the product has a net realizable value of $5 per unit. What amount should ending inventory be valued at on the April statement of financial position?

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Date Explanation Units Unit Cost/Price $ 8 9 12 Apr. Beginning inventory 50 110 (140) 120 (110) 20 6 Purchases 8 Sales urchases 10 20 Sales 27 Purchases