Costing inventory Golden Eagle Company begun operations in 2016 by selling a single product. Data on purchases and sales for the year were as follows: Sales: April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28.000 October 18,000 November 10,000 December 8,000 Total units 168,000 Total sales 10,000,000 On January 4, 2017, the president of the company, Connie Kilmer, asked for your advice on costing the 32,000-unit physical inventory that was taken on December 51, 2016. Moreover, since the firm plans to expand its product line, she asked for your advice on the use of a perpetual inventory system in the future. 1. Determine the cost of the December 31. 2016, inventory under the periodic system, using the (a) first-m, first-out method, (b) last-in, first-out method, and (c) weighted average cost method. 2. Determine the gross profit for the year under each of the three methods in (1). 3. a. Explain varying viewpoints why each of the three inventory costing methods may best reflect the results of operations for 2016. b. Which of the three inventory costing methods may best reflect the replacement cost of the inventory on the balance sheet as of December 31, 2016:' c. Which inventory costing method would you choose to use for income tax purposes? Why? d. Discuss the advantages and disadvantages of using a perpetual inventory system. From the data presented in this case, is there any indication of the adequacy of inventory' levels during the year?

Question 2)  Textbook Exercise 13-19: Target prices, target costs, cost management.   13-19  Target prices, target costs, activity-based costing. Snappy Tiles is a small distributor of marble tiles. Snappy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2016:   For 2016, Snappy buys 250,000 marble tiles at an average cost of $3 per tile and sells them to retailers at an average price of $4 per tile. Assume Snappy has no fixed costs and no inventories.   Required: Calculate Snappy’s operating income for 2016. For 2017, retailers are demanding a 5% discount off the 2016 price. Snappy’s suppliers are only willing to give a 4% discount. Snappy expects to sell the same quantity of marble tiles in 2017 as in 2016. If all other costs and cost-driver information remain the same, calculate Snappy’s operating income for 2017. Suppose further that Snappy decides to make changes in its ordering and…

PR 15-5B Statement of cost of goods manufactured and income Cost of goods manufactured, $367,510 statement for a manufacturing company.  The following information is available for Shanika Company for 20Y6 Instructions Prepare the 20Y6 statement of cost of goods manufactured. Prepare the 20Y6 income statement. Inventories January 1 December 31     Materials $ 77,350 $ 95,550   Work in process $ 109,200 $ 96,200   Finished goods $ 113,750 $ 100,100   Advertising expense   $ 68,250   Depreciation expense—office equipment   $ 22,750   Depreciation expense—factory equipment   $ 14,560   Direct labor   $ 186,550   Heat, light, and power—factory   $ 5,850   Indirect labor    $ 23,660   Materials purchased    $ 123,500   Office salaries expense   $ 77,350     Property taxes—factory   $ 4,095   Property taxes—headquarters building   $ 13,650   Rent expense—factory   $…