Case D. Stewart Company reports the following inventory records for November: INVENTORY Date Activity #...

Case D. Stewart Company reports the following inventory records for November:

INVENTORY
Date	Activity	# of Units	Cost/Unit
November 1	Beginning balance	125	$	16
November 4	Purchase	330		17
November 7	Sale (@ $57 per unit)	210
November 13	Purchase	510		19
November 22	Sale (@ $57 per unit)	505

Selling, administrative, and depreciation expenses for the month were $15,500. Stewart’s tax rate is 30 percent.

1. Calculate the cost of ending inventory and the cost of goods sold under each of the following methods using periodic inventory system: (Do not round intermediate calculations.)

2-a. What is the gross profit percentage under the FIFO method? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

2-b. What is net income under the LIFO method?

3. Stewart applied the lower of cost or market method to value its inventory for reporting purposes at the end of the month. Assuming Stewart used the FIFO method and that inventory had a market replacement value of $18.10 per unit, what would Stewart report on the balance sheet for inventory?

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