Brief Exercise 6-12

On June 30, Calico Fabrics has the following data pertaining to the retail inventory method. Goods available for sale: at cost $50,844; at retail $66,900; net sales $36,900; and ending inventory at retail $30,000.

Compute the estimated cost of the ending inventory using the retail inventory method.

The estimated cost of the ending inventory

$

Problem 6-8A Mercer Inc. is a retailer operating in British Columbia. Mercer uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Mercer Inc. for the month of January 2014.

Date	Description	Quantity	Unit Cost or Selling Price
January	1	Beginning inventory	260	$16
January	5	Purchase	364	19
January	8	Sale	286	28
January	10	Sale return	26	28
January	15	Purchase	143	21
January	16	Purchase return	13	21
January	20	Sale	234	33
January	25	Purchase	52	23

Calculate the Moving-average cost per unit at January 1, 5, 8, 15, 20, & 25.(Round answers to 3 decimal places, e.g. $5.251.)

Moving-Average Cost per unit
January 1	$
January 5	$
January 8	$
January 10	$
January 15	$
January 16	$
January 20	$
January 25	$

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For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost.(Round answers to 0 decimal places, e.g. $2,150.)

LIFO	FIFO	Moving-average
Cost of goods sold	$	$	$
Ending inventory	$	$	$
Gross profit	$	$	$