B. Han Co. is a small wholesaler of fashion luggage. The accounting records show the following purchases and sales of the Style 80 Suburban during the first year of business. STYLE 80 SUBURBAN Purchases Sales Date Units Price Total Cost Date Units Jan. 20 45 $ 71 $ 3,195 Feb. 15 40 Apr. 10 70 85 5,950 Apr. 20 50 Aug. 5 30 110 3,300 Aug. 24 35 Dec. 21 55 125 6,875 Dec. 27 15 Total 200 $ 19,320 140 A physical count of Style 80 at the end of the year reveals that 60 are still on hand. Instructions: (1) Determine the cost of Style 80 inventory as of December 31 by means of the average cost method with a periodic system: Average unit cost = $ 19,320 200 =$ 96.6 60 units in the inventory @ $ 96.6 =$ 5,796 (2) Determine the cost of Style 80 inventory as of December 31 by means of the first-in, first-out (fifo) method with a periodic system: INVENTORY (Fifo Periodic) Units Price Total Cost 5 $ 110 $ 550 55 125 6875 60 7425 $ (3) Determine the cost of Style 80 inventory as of December 31 by means of the last-in, first-out (lifo) method with a periodic inventory system: INVENTORY (Lifo Periodic) Units Price Total Cost 45 $ 71 $ 3195 15 85 1275 60 4470 $ (4) Determine the cost of Style 80 inventory as of December 31 by means of the last-in, first-out (lifo) method with a perpetual inventory system: INVENTORY (Lifo Perpetual) Units Price Total Cost 5 $ 71 $ 355 15 85 1275 40 125 5,000 60 $ 6630 C. Cash inc. operates a department store and takes a physical inventory at the end of each calendar year. However, Cash likes to have a balance sheet and an income statement available at the end of each month in order to study financial position and operating trends. Cash estimates inventory at the end of each month for accounting statement preparation purposes. The following information is available as of January 31 of the current year: Cost Retail Merchandise inventory, January $ 123,600 $ 172,000 Purchases in January 269,000 480,600 Purchases returns and allowances - January 5,000 6,600 Sales in January 495,000 Sales returns and allowances - January 11,000 Instructions: (1) Determine the estimated cost of the inventory on January 31, using the Retail Method. Cost Retail Merchandise inventory, January 1 $ 123,600 $ 172,000 Purchases in January (net) 269,000 480,600 Merchandise available for sale Ratio of cost to retail: $ = % Sales in January (net) Merchandise inventory, January 31, at retail $ Merchandise inventory, January 31, at estimated cost $ x % = $ (2) Determine the estimated cost of inventory on January 31, using the Gross Profit method. On the basis of past experience, Cash estimates a rate of gross profit of 36% of net sales. Cost Merchandise inventory, January 1 $ Purchases in January (net) Merchandise available for sale $ Sales in January (net) $ Less estimated gross profit ($ x % = Estimated cost of merchandise sold Estimated merchandise inventory, January 31 $