lower-of-cost-or-market-rule and estimating ending inventory by the gross profit method

1)Assume that a king burger restaurant has the following perpetual inventory record for hamburger patties:

Date Purchases Cost of goods sold inventory on hand may 9 500 500 22 300 200 31 200 400 At May 31, the accountant for the restaurant determines that the current replacement cost of the ending inventory is $450. Make any adjusting entry needed to apply the lower-of-cost-or-market rule. Then report inventory on the balance sheet. King Burger uses the average-cost method.

2)Carpetmaster began the year with inventory of $350,000. Inventory purchases for the year total $1,600,000, and cost of goods sold will be $1,750,000. How much is Carpetmaster’s estimated cost of ending inventory? Use the gross profit method.