1) Calculate cost of goods sold and ending inventory at December 31, 2015 under the FIFO method. Assume Johnson uses a perpetual inventory system. Assume the opening inventory was valued at $8.20 per unit.

a. Prepare the journal entries to record the July 15 sale and the September 30 purchase.

2) Calculate cost of goods sold and ending inventory at December 31, 2015 under the LIFO method. Assume Johnson uses a periodic inventory system and that the opening inventory was valued at $7.00 per unit.

a. Prepare any adjusting entries necessary at 12/31/15.

1. Calculate the 2015 inventory turnover ratio under the two methods. Explain what the difference demonstrates.
2. Assume that Johnson?s replacement cost per unit at 12/31/15 is $7.70. Prepare any adjusting entries necessary under both the FIFO and LIFO methods at 12/31/15.

ACCT: 2100 Spring 2016 Chapter 7 Take Home Quiz Johnson Company sells one product. Its inventory records contained the following information: Beginning inventory at January 1, 2015 Purchases on account: March 31 June 30 September 30 December 31 Units 8,000 Cost per Unit 12,000 15,000 13,000 7,000 47,000 $8.25 7.90 7.50 7.70 Units Sales on account: January 15 July 15 November 1 4,000 17,000 12,000 33,000 Total Cost $99,000 118,500 97,500 53,900 $368,900 Sale Price Total Sale $16.00 15.75 14.00 $64,000 267,750 168,000 $499,750 Required: 1) Calculate cost of goods sold and ending inventory at December 31, 2015 under the FIFO method. Assume Johnson uses a perpetual inventory system. Assume the opening inventory was valued at $8.20 per unit. a. Prepare the journal entries to record the July 15 sale and the September 30 purchase. 2) Calculate cost of goods sold and ending inventory at December 31, 2015 under the LIFO method. Assume Johnson uses a periodic inventory system and that the opening inventory was valued at $7.00 per unit. a. Prepare any adjusting entries necessary at 12/31/15. 3) Calculate the 2015 inventory turnover ratio under the two methods. Explain what the difference demonstrates. 4) Assume that Johnson's replacement cost per unit at 12/31/15 is $7.70. Prepare any adjusting entries necessary under both the FIFO and LIFO methods at 12/31/15