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QI: ABC Company's inventory records show the following data: (under periodic inventory system) Units Units cost Total July 1 Beginning Inventory 25 21 July 7 Purchases 8023 July 22 Purchases Total Goods available for sales 120 525 1840 15 24 360 2725 A physical count of merchandise inventory on July 31 reveals that there are 40 units on hand (ending inventory 30 unit) Using the average-cost method and FIFO to calculate the value of ending inventory: Using the FIFO and average cost inventory method, the amount allocated to cost of goods sold for July is: Q2: XYZ COMPANY had the following information for its inventory (under perpetual inventory system): Units Units cost Total July 1 Beginning inventory 14 5 Purchases 56 120 6720 23 113 2599 Total Goods available for 10873 1554 21 Purchases 93 sales Sales transactions: Total units sold are 65 units Using the average-cost method and FIFO to calculate the value of ending inventory: Using the FIFO and average cost inventory method, the amount allocated to cost of goods sold for July is: Q3: The Entertainment Center accumulates the following cost and market data at December 31. Inventory Categories Cost Data NRV Data LCNRV Camera $20,000 $19,200 Camcorders 7,000 7,500 DVDs 16,000 14,000 TOTAL What is the lower-of-cost-or-net realizable value of the inventory? What is the amount of right off? Q4: Yazan Pharmacy reported cost of goods sold as follows: Yazan made the following error: 2018 Beginning inventory was understated by $7000. Indicate the effect that the errors had on the items as overstated (O) or understated (U). 2018 2019 Cost of goods sold Net income Q5: At December 31, 2008, the following information was available for Rich Company: ending inventory $22,600; beginning inventory $61,400; cost of goods sold $191,000; and sales revenue $450,000. Calculate the inventory turnover ratio and days in inventory for Rich

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