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(answered) – 1) Calculate cost of goods sold and ending inventory at December

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(answered) – 1) Calculate cost of goods sold and ending inventory at DecemberDescriptionSolution downloadThe Question1) 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.ACCT: 2100Spring 2016Chapter 7 Take Home QuizJohnson Company sells one product. Its inventory records contained the following information:Beginning inventory at January 1, 2015Purchases on account:March 31June 30September 30December 31Units8,000Cost per Unit12,00015,00013,0007,00047,000$8.257.907.507.70UnitsSales on account:January 15July 15November 14,00017,00012,00033,000Total Cost$99,000118,50097,50053,900$368,900Sale PriceTotal Sale$16.0015.7514.00$64,000267,750168,000$499,750Required:1) Calculate cost of goods sold and ending inventory at December 31, 2015 under the FIFOmethod. Assume Johnson uses a perpetual inventory system. Assume the openinginventory was valued at $8.20 per unit.a. Prepare the journal entries to record the July 15 sale and the September 30purchase.2) Calculate cost of goods sold and ending inventory at December 31, 2015 under the LIFOmethod. Assume Johnson uses a periodic inventory system and that the openinginventory 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 thedifference demonstrates.4) Assume that Johnson?s replacement cost per unit at 12/31/15 is $7.70. Prepare anyadjusting entries necessary under both the FIFO and LIFO methods at 12/31/15.