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keep them on the books at cost, "since that is what we paid for them, after all." Duicy use. However, management would prefer to Instructions Prepare each item above, saying why you did or did not make an adjustment for each item. a schedule to determine the correct inventory amount. Provide explanations for E6-3 On December 1, Kiyak Electronics Ltd. has three DVD players left in stock. All are identical, all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was purchased on June 1 at a cost of $100. Another, with serial #1045, was purchased on November 1 for $88. The last player, serial #1056, was purchased on Novem- ber 30 for $80 Instructions (a) Calculate the cost of goods sold using the FIFO periodic inventory method assuming that two of the three players were sold by the end of December, Kiyak Electronics' (b) If Kiyak Electronics used the specific identification method instead of the FIFO ight it alter its earnings by "selectively choosing" which particular players to sell to the two customers? What would Kiyak's cost of goods sold be if the year-end. method, how m company wished to minimize earnings? Maximize earnings? c) Which of the two inventory methods do you recommend that Kiyak use? Explain why. Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. ormation relating to Elsa's purchases of Xpert snowboards during September is shown uring the same month, 121 Xpert snowboards were sold. Elsa's uses a periodic nventory system Total Cost

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