I have this accounting homework about basic inventory anyone can help me with it? thanks in advance !

Acct 3401 Financial Statements Project spring, 2017 TechnoGym Inventory Exercise Name:______________________________________ Class Time:____________________ This Topic assignment is worth 10 points. It is due by the end of Tue. Apr. 25 via MyGateway Submission link in the \"Topic assignment\" folder. Background: This is a continuation of the activities at TECHNOGYM in January, 2017. As in past activities, TECHNOGYM uses a Jan. 1 - Dec. 31 financial year. Exercise for Inventory: TECHNOGYM uses a periodic inventory system for its normal operations. Following are the unadjusted account balances as of Dec. 31, 2016 for all accounts related to sales and inventory of TechTone products. Account Accounts Receivable Allowance for Doubtful Accounts Purchases Inventory TechTone Sales Revenue TechTone Sales Returns Cost of TechTone Equipment Sold Debit Credit 17,607,500 20,000 85,832,500 2,500,000 134,500,000 2,017,500 0 Upper management is contemplating changing the method used to report the cost of goods sold. They will choose the method (either FIFO or DVLIFO) that maximizes operating cash flow. The general ledger has historically been kept on a FIFO basis. Following is the inventory purchases information for 2016: Purchases for 2016 (normal operations) Beginning: 5,000 units @ $500 Purchases: Apr-May 40,000 units @ $500 Jun-Jul 35,000 units @ $505 Aug-Sep 48,500 units @ $515 Oct 24,000 units @ $520 Nov-Dec 20,000 units @ $535 Year-End Physical Inventory Count 38,000 each each each each each each units Note: For full credit, you must show documentation for both DVLIFO and FIFO calculations, with indication and reasoning for your choice. Requirement 1: Develop a detailed schedule showing the calculation of Ending Inventory and Cost of Goods Sold using FIFO for 2016. Page 1 of 2 Acct 3401 Financial Statements Project spring, 2017 TechnoGym Inventory Exercise Requirement 2: Show the adjusting journal entry(ies) (if any) that is/are needed on Dec. 31, 2016 related to FIFO inventory. Remember to show the journal entry in proper form! COGS, ending inventory Requirement 3: Develop a detailed schedule showing the calculation of Ending Inventory and Cost of Goods Sold using DVLIFO for 2016. Hint: DVLIFO adjustments are calculated at the end of the year, using annual layersnot based on each individual purchase. TECHNOGYM used 1.07 as its DVLIFO index. DV LIF O Ending Ending Inventory at Inventory at Year-End Cost Index Base-Yr Cost Inventory Layers at Base-Yr Cost Inventory Ending LIFO Layers at Inventory at Reserve Acq.-Yr Cost DV LIFO Cost Adjustment 2015 2016 Requirement 4: Show the adjusting journal entry(ies) (if any) that would be needed on Dec. 31, 2016 if management decides to adopt the DVLIFO inventory method. Remember to show the journal entry in proper form! Requirement 5: Using the table below, show the amounts that would appear on indicated line items of the Income Statement and Balance Sheet under the two methods. FIFO Method Income Statement Cost of TechTone Equipment Sold Balance Sheet Inventory Which method gives higher net income? Which method gives higher assets? Page 2 of 2 DVLIFO Method