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 $570 July 7 15 units at $38 15 units at $39 14 units at $40 Purchase Purchase 585 Nov. 23 560 44 units $1,715 There are 22 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 Turnover and Number of Days! Sales in Inventory The following financial statement data for years ending December 31 for Gillisple Company are shown below. 2016 2015 Cost of merchandise sold $1,611,840 $1,002,655 Inventories: $287,620 Beginning of year End of year $201,480 287,620 413,180 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? Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory Mar. 10 Purchase 40 units @ $126 50 units @ $136 30 units @ $142 Aug. 30 Dec. 12 Purchase Purchase 80 units @ $148 There are 40 units of the item in the physical inventory at December 31. The periodic inventory system is used. E Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to nearest whole dollar. fina nswers Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory Mere chandise Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost LI Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $825,000; Allowance for Doubtful Accounts has a debit balance of $7,500; and sales for the year total $3,710,000. Bad debt expense is estimated at 3/4 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 11 Bad Debt Expense 3. Determine the net realizable value of accounts receivable. soetermine the Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $875,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $3,940,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,800. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. $ Accounts Receivable Allowance for Doubtful Accounts Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. Effect of Doubtful Accounts on Net Income During its first year of operations, Master Plumbing Supply Co. had sales of $320,000, wrote off $5,100 of accounts as uncollectible using the direct write-off method, and reported net income of $35,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible