Brief Exercise 6-12On June 30, Calico Fabrics has the following data pertaining to the retail inventory method. Goods available for sale: at cost $48,618; at retail $65,700; net sales $41,200; and ending inventory at retail $24,500. Compute the estimated cost of the ending inventory using the retail inventory method.
| The estimated cost of the ending inventory | $ |
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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 | 180 | $14 | | January | 5 | Purchase | 252 | 18 | | January | 8 | Sale | 198 | 29 | | January | 10 | Sale return | 18 | 29 | | January | 15 | Purchase | 99 | 20 | | January | 16 | Purchase return | 9 | 20 | | January | 20 | Sale | 162 | 33 | | January | 25 | Purchase | 36 | 23 | |
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| 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 | $ | $ | $ | | Click if you would like to Show Work for this question: | Open Show Work |
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