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1. In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 400 units at $7 on January 1, (2) 600 units at $10 on January 8, and (3) 930 units at $11 on January 29. Assume 1,130 units are on hand at the end of the month.

1. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the (a) FIFO,(b) LIFO, and (c) weighted average cost flow assumptions. Assume perpetual inventory system and sold 800 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.) FIFO LIFO Weighted Average Cost Goods Available for Sale Cost of Goods Sold Ending Inventory 2. Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Item Quantity on Hand Unit Cost When Acquired (FIFO) Market Value at Year-End LCM per Item Total LCM Recorded Total Cost Alligator Armoires 90 $32 $27 $2,880 Bear Bureaus 95 90 90 8,550 Cougar Credenzas 20 100 102 2,000 Dingo Cribs 45 45 45 2,025 Elephant Dressers 420 20 17 8,400

Compute the amount that should be reported for the ending inventory using the LCM rule applied to each item.

3. Prepare the journal entry that Peterson Furniture Designs would record on December 31 to write-down its inventory to LCM. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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