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HANDOUT 7-1 INVENTORY COSTING METHODS Quickie Grocery acquired the following five bottles of Corporate-Cola soft drink during January, Year 1. An inventory count conducted at January 31 revealed that there were two bottles remaining in inventory. Date Jan. 2 Jan. 10 | Jan. 12 | Jan. 16 Jan. 25 Cost $1.00 $2.00 $3.00 $4.00 $5.00 Indicate the number of bottles sold in January = Using the charts provided below, determine Quickie Grocery's Cost of Goods Sold and Inventory cost at January 31, Year 1 under each of the following inventory costing methods: Specific Identification Quickie Grocery keeps track of each individual bottle. Assume that Quickie Grocery knows that it sold the bottles acquired on January 2, 12, and 16. Cost Date Jan. 2 Jan. 10 $1.00 $2.00 Jan. 12 | Jan. 16 | Jan. 25 $3.00 $4.00 $5.00 Total $15.00 COGS Inventory First-in, First-out (FIFO) Date Cost Jan. 2 Jan. 10 $1.00 $2.00 Jan. 12. Jan. 16 Jan. 25 $3.00 Total $4.00 $5.00 $15.00 COGS Inventory Last-in, First-out (LIFO) Date Jan. 2 Cost $1.00 Jan. 10 Jan. 12 $2.00 Jan. 16 Jan. 25 $3.00 $4.00 $5.00 Total $15.00 COGS Inventory Weighted Average Date Cost Jan. 2 Jan. 10 $1.00 $2.00 Jan. 12 Jan. 16 Jan. 25 $3.00 $4.00 $5.00 $15.00 COGS Inventory Using the results calculated above, complete the following table: Cost of Goods Sold Specific Identification FIFO LIFO Weighted Average Inventory HANDOUT 7-2 LOWER OF COST OR MARKET/NET REALIZABLE VALUE (LCM/NRV) Amanda Corporation's ending inventory at December 31, Year 1 consisted of the following items whose values have recently changed: Sest Value Item per Item per Item Quantity AA $ 30 $26 100 BB 80 80 150 CC 100 104 200 Determine the lower of cost or market/net realizable value per item and the total amount of the write-down that is required at December 31, Year 1. Prepare the journal entry required to record the write-down. Date Accounts Debit Credit

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