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1.Included in the December 31, 2013, inventory of the Wholeridge Supply Company are 2,600 deluxe ring binders in the amount of $5,902. An examination of the most recent acquisitions of binders showed the following costs: January 26, 2014, 2,300 at $2.42 each; December 6, 2013, 1,900 at $2.28 each; November 26, 2013, 2,400 at $2.07 each. What is the misstatement in valuation of the December 31, 2013, inventory for deluxe ring binders, assuming FIFO inventory valuation? What would your answer be if the January 26, 2014, acquisition was for 2,300 binders at $2.12 each?
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