1. Lisa Company had 175 units in beginning inventory at a total cost of $21,525. The company purchased 350 units at a total cost of $56,000. At the end of the year, Lisa had 140 units in ending inventory.

(a) Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)

2. Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josef’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $326,720. Discussions with the accountant reveal the following.

1. Josef sold goods costing   $40,830 to Sorci Company, FOB shipping point, on December 28. The goods   are not expected to arrive at Sorci until January 12. The goods were not   included in the physical inventory because they were not in the warehouse.

2. The physical count of the   inventory did not include goods costing $93,560 that were shipped to   Josef FOB destination on December 27 and were still in transit at year-end.

3. Josef received goods costing   $22,410 on January 2. The goods were shipped FOB shipping point on   December 26 by Solita Co. The goods were not included in the physical count.

4. Josef sold goods costing   $49,260 to Natali Co., FOB destination, on December 30. The goods were   received at Natali on January 8. They were not included in Josef's physical   inventory.

5. Josef received goods costing   $40,480 on January 2 that were shipped FOB destination on December 29.   The shipment was a rush order that was supposed to arrive December 31. This   purchase was included in the ending inventory of $326,720.