Valuation of Inventories: A Cost-Basis Approach.

Robinson Co. is a specialty retailer that operates in several locations in western North Carolina. Robinson sells snowboards and related items. Data related to purchases and sales of one of its top selling snowboard models for the years 2017 and 2018 are shown below:

Date	Description	Units	Cost Per Unit
01/01/17	Inventory	36	$397
01/25/17	Purchase	21	$409
10/06/17	Purchase	44	$416
11/01/17	Purchase	35	$428
11/22/17	Purchase	26	$441
2017	Sales	103
01/29/18	Purchase	18	$454
10/04/18	Purchase	37	$469
11/07/18	Purchase	24	$486
12/10/18	Purchase	13	$502
2018	Sales	119

Robinson uses a periodic inventory system to account for its inventory transactions. The company prepares financial statements just once a year, at its December 31 year-end. None of the companys inventory was stolen or damaged during these two years.

Instructions

Address the following matters related to Robinson Co.s accounting for, and reporting of, its inventory activities during 2017 and 2018:

Compute the companys inventory at December 31, 2017 andits cost of goods sold for 2017 under each of the following cost flow methods:

FIFO method

LIFO method

Average cost method (round the average cost per unit to the nearest cent)

Compute the companys inventory at December 31, 2018 andits cost of goods sold for 2018 under each of the following cost flow methods:

FIFO method

LIFO method

Average cost method (round the average cost per unit to the nearest cent)

Assume Robinson uses a perpetual system and the FIFO method for day-to-day bookkeeping purposes, and the company converts its accounts to the LIFO method (periodic system) for financial reporting. Give the adjusting entry Robinson must make at December 31, 2017 to convert its accounts to LIFO. Ignore income taxes.

As in (c), assume Robinson keeps its accounts on a FIFO basis and converts them at year-end to the LIFO method. Give the adjusting entry needed at December 31, 2018 to convert the companys accounts to LIFO. Ignore income taxes. (Note Robinson follows the practice of making reversing entries to reverse the effects of certain prior-year adjusting entries. Proceed as if Robinson recorded an entry on January 1, 2018 to reverse the effects of the December 31, 2017 LIFO conversion entry. You do notneed to make this reversing entry; simply note that it has been made.)

Prepare journal entries and supporting calculations please and thank you!