JackJoe, Inc. sells toy mice to high-end toy stores. Jackson uses a periodic inventory system and uses LIFO to value ending inventory.
Following is JackJoe's inventory activity for January. The toy mice on hand on January 1 had a unit cost of $1. Select a variable (X) for the January 28th sale, a number between 10 and 75.
	Date		Purchases		Sales		Units on Hand
	1-Jan						50
	5-Jan		150 units @ $2 each				200
	16-Jan				150 units @ $100 each		50
	23-Jan		50 units @ $3 each				100
	28-Jan				X units @ $100 each		?
(a)	Prepare the inventory analysis for January and write the adjusting journal entry for inventory. and How much is the gross profit for January?
(b)	If Jackson used FIFO, would gross profit be greater, equal, or less than gross profit using LIFO? Why?

Answer rating: 100% (QA)

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