JackJoe, Inc. sells toy mice to high-end toy stores. JackJoe's accounting policy for inventory is periodic LIFO inventory.
Following is JackJoe's inventory activity for January. The toy mice on hand at January 1 had a unit cost of $1.
	Date		Purchases		Sales		Units on Hand
	1-Jan						50
	5-Jan		150 units @ $ X=$4.14 each				200
	16-Jan				120 units @ $100 each		80
	23-Jan		50 units @ $4 each				130
	27-Jan				70 units @ $100 each		60
(a)	1. Prepare the inventory analysis for January (5 points) and 2. write the adjusting journal entry for inventory. (5 points) 3. How much is gross profit for January? (5 points)
(b)	If JackJoe used FIFO, would gross profit be greater, equal or less than gross profit using LIFO? Why? (5 points)
(c)	1. What is inventory for a retailer? 2. What increases the balance of the account and what decreases it? 3. What would be presented on the balance sheet if JackJoe Inc. estimated the market value of the mice at the end of January to be 0? (all three questions, 10 points)

Answer rating: 100% (QA)

a Inventory Analysis for January Date Purchases Sales Units on Hand Cost per Unit Total Cost Jan 1 50 100 5000 Jan 5 150 200 414 82800 Jan 16 120 80 X ... View the full answer