You are provided with the following information for Geo Inc., which purchases its inventory from a supplier on account. All sales are also on account. Geo uses the FIFO cost method in a perpetual inventory system. Increased competition has recently decreased the price of the product.

Instructions
(a) Prepare all journal entries for the month of October for Geo, the buyer.
(b) Determine the ending inventory amount for Geo.
(c) On October 31, Geo learns that the product has a net realizable value of $10 per unit. What amount should ending inventory be valued at on the October 31 statement of financial position?

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Date Explanation Oct.1 Beginning inventory 5 Purchases 8 Sales 15 Purchases 20 Sales 26 Purchases Units 60 100 (130) 35 (50) 15 Unit Cost Price $14 13 20 12 16