Question
Go Birds, Inc. is a retailer operating in Philadelphia. Go Birds uses the perpetual inventory method. Assume that there are no credit transactions and all
Go Birds, Inc. is a retailer operating in Philadelphia. Go Birds uses the perpetual inventory method. Assume that there are no credit transactions and all amounts are settled in cash.
You are provided with the following information for Go Birds for the month of March 2021:
Date | Description | Quantity | Unit Cost / Selling Price | |||
Feb. 28 |
| Ending inventory |
| 160 |
| $20 |
Mar. 2 | Purchase | 160 | 24 | |||
Mar. 6 | Sale | 190 | 40 | |||
Mar. 9 | Purchase | 65 | 26 | |||
Mar. 10 | Sale | 60 | 44 | |||
Mar. 23 | Purchase | 120 | 29 | |||
Mar. 30 | Sale | 140 | 49 |
Instructions:
For each of the following cost flow assumptions, calculate (ii) cost of goods sold for the month of March 2021, (ii) ending inventory at March 31, 2021, and (iii) gross profit for the month of March 2021.
-
LIFO
-
FIFO
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Moving-average (i.e., average cost/weighted average). Round cost per unit to two decimal places.
Also I'm not sure really how to go about this would you mind putting the work down to so I can see how to do it?
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