Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or- market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Item Inventory Quantity Unit Cost Price Unit Market Price CK3] 98 $22 $19 BJ54 197 11 $ 5,014 x Feedback Check My Work Under lower-of-cost-or-market, for each item in inventory, choose the lower of total cost price or the total market price as the assigned value for computing inventory cost. First you must compute the total cost and total market for each item. Learning Objective 6. Periodic Inventory Using FIFO, LIFO, and weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 6 units at $44 $264 July 7 Purchase 10 units at $47 470 Nov. 23 Purchase 6 units at $49 294 22 units $1,028 There are 7 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Inventory Tumover and Number of Days' Sales in Inventory The following financial statement data for years ending December 31 for Gillispie Company are shown below. 2016 2015 Cost of merchandise sold $1,343,200 $817,600 Inventories: Beginning of year $275,210 $191,990 End of year 396,390 275,210 a. Determine the inventory turnover for 2016 and 2015. Round to one decimal place. Inventory Turnover 2016 2015 b. Determine the number of days' sales in inventory for 2016 and 2015. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Number of Days' Sales In Inventory 2016 days 2015 days c. Does the change in inventory turnover and the number of days' sales in inventory from 2015 to 2016 indicate a favorable or an unfavorable trend? Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $865,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $3,890,000. Bad debt expense is estimated at 1/2 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the net realizable value of accounts receivable