Mercer Inc. is a retailer operating in British Columbia. Merceruses the perpetual inventory method. All sales returns fromcustomers result in the goods being returned to inventory; theinventory is not damaged. Assume that there are no credittransactions; all amounts are settled in cash. You are providedwith the following information for Mercer Inc. for the month ofJanuary 2014
Date
Description
Quantity
Unit Cost or Selling Price
January 1 Beginning inventory 200 $12 January 5 Purchase 280 15 January 8 Sale 220 24 January 10 Sale return 20 24 January 15 Purchase 110 16 January 16 Purchase return 10 16 January 20 Sale 180 29 January 25 Purchase 40 19
Calculate the Moving-average cost per unit at January 1, 5, 8,15, 20, & 25.
For each of the following cost flow assumptions, calculate costof goods sold, ending inventory, and gross profit. (1) LIFO. (2)FIFO. (3) Moving-average cost.
Mercer Inc. is a retailer operating in British Columbia. Merceruses the perpetual inventory method. All sales returns fromcustomers result in the goods being returned to inventory; theinventory is not damaged. Assume that there are no credittransactions; all amounts are settled in cash. You are providedwith the following information for Mercer Inc. for the month ofJanuary 2014
Date | Description | Quantity | Unit Cost or Selling Price | ||||
| January | 1 | Beginning inventory | 200 | $12 | |||
| January | 5 | Purchase | 280 | 15 | |||
| January | 8 | Sale | 220 | 24 | |||
| January | 10 | Sale return | 20 | 24 | |||
| January | 15 | Purchase | 110 | 16 | |||
| January | 16 | Purchase return | 10 | 16 | |||
| January | 20 | Sale | 180 | 29 | |||
| January | 25 | Purchase | 40 | 19 | |||
Calculate the Moving-average cost per unit at January 1, 5, 8,15, 20, & 25.
For each of the following cost flow assumptions, calculate costof goods sold, ending inventory, and gross profit. (1) LIFO. (2)FIFO. (3) Moving-average cost.
Related questions
| WoodwardIndustries is a retailer. Assume that there are no credittransactions; all amounts are settled in cash. The followinginformation for the month of January 2017. | |||||||||
| Unit Cost or | |||||||||
| Date | Description | Quantity | Selling Price | ||||||
| Dec. 31 | Ending inventory | 172 | $22 | ||||||
| Jan. 2 | Purchase | 103 | 24 | ||||||
| Jan. 6 | Sale | 179 | 41 | ||||||
| Jan. 9 | Purchase | 68 | 26 | ||||||
| Jan. 10 | Sale | 48 | 46 | ||||||
| Jan. 23 | Purchase | 110 | 27 | ||||||
| Jan. 30 | Sale | 132 | 49 | ||||||
| a) | Please calculate (fill in the blanks) GOCS andEnding Inventory using various inventory methods, under theperpetual costing system: | ||||||||
| Please put your final answers in the designatedcells below. You can you the next tab (worksheet) for calculationpurposes. | |||||||||
| COGS | Ending Inventory | Gross Profit | |||||||
| Perpetual | FIFO | ||||||||
| LIFO | |||||||||
| Weighted Average | |||||||||
| Note: Gross Profit = Revenue - COGS | |||||||||
Use the following information for the Exercisesbelow.
[The following information applies to the questionsdisplayed below.]
Laker Company reported the following January purchases and salesdata for its only product.
Date | Activities | Units Acquired at Cost | Units sold at Retail | ||||||||||||||
Jan. | 1 | Beginning inventory | 140 | units | @ | $ | 6.00 | = | $ | 840 | |||||||
Jan. | 10 | Sales | 100 | units | @ | $ | 15 | ||||||||||
Jan. | 20 | Purchase | 60 | units | @ | $ | 5.00 | = | 300 | ||||||||
Jan. | 25 | Sales | 80 | units | @ | $ | 15 | ||||||||||
Jan. | 30 | Purchase | 180 | units | @ | $ | 4.50 | = | 810 | ||||||||
Totals | 380 | units | $ | 1,950 | 180 | units | |||||||||||
The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 200 units, where 180are from the January 30 purchase, 5 are from the January 20purchase, and 15 are from beginning inventory.
Exercise 6-3 Perpetual: Inventory costing methods LO P1
Required:
1. Complete the table to determine the costassigned to ending inventory and cost of goods sold using specificidentification.
2. Determine the cost assigned to ending inventoryand to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventoryand to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventoryand to cost of goods sold using LIFO.
Required 3
Required 4
Complete the table to determine the cost assigned to endinginventory and cost of goods sold using specific identification.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using weighted average. (Round cost per unit to 2decimal places.)
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Determine the cost assigned to ending inventory and to cost ofgoods sold using FIFO.
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Determine the cost assigned to ending inventory and to cost ofgoods sold using LIFO.
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