cp 7-3 costing inventory

Respond to Paula's concerns CP7-3 Costing inventory Golden Eagle Company began operations in 2016 by selling a single prodar purchases and sales for the year were as follows Units Puchased Unit Cont Total Con $1,134600 1287000 33,000 39.60 uly 10 August to October 25 1,162 800 27.200 12,800 8.000 43.50 358.800 16000 units 16.000 20.000 24,000 Apri May 28.000 10,000 December Total units Total sales On January 4, 2017, the president of the company, Connie Kilmer, asked for your advice on costing the 32,000-unit physical inventory that was taken on December 31, 2016 Moreover, since the firm plans to expand its product line, she asked for your advice on the use of a perpetual inventory system in the future 1. Determine the cost of the December 31, 2016, inventory under the periodic system using the (a) first-in, first-out method, (b) last in, first-out method, and (c) weighted average cost method. 2. Determine the gross profit for the year under each of the three methods in (1) Explain varying viewpoints whyree inventory costing meth bWhich of the three inventory cod may best reflect the replace- Which inventory costing method would you choose to use for income tax dDiscuss the advantages and disadvantages of using a perpetual inventory ods may best reflect the results of oper ment cost of the inventory on the halan otof December 31, 2016? purposes? Why? system. From the data presented in this case, is there any indication of the adequacy of inventory levels during the year? CP 7-4 Inventory ratios for Dell and HP Dell Inc. and Hewlett-Packard Development Company, L.P. (HP) are both manufacturers computer equipment and peripherals. However, the two companies follow two differest strategies. Dell follows primarily a build-to-order strategy, where the consumer orders the computer from a Web page. The order is then manufactured and shipped to the customer