Question
Problem 6-08A a1-a2 (Part Level Submission) Bramble Inc. is a retailer operating in British Columbia. Bramble uses the perpetual inventory method. All sales returns from
Problem 6-08A a1-a2 (Part Level Submission) Bramble Inc. is a retailer operating in British Columbia. Bramble 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 Bramble Inc. for the month of January 2020.
Date | Description | Quantity | Unit Cost or Selling Price | ||||||
January | 1 | Beginning inventory | 100 | $21 | |||||
January | 5 | Purchase | 148 | 24 | |||||
January | 8 | Sale | 115 | 36 | |||||
January | 10 | Sale return | 10 | 36 | |||||
January | 15 | Purchase | 55 | 26 | |||||
January | 16 | Purchase return | 5 | 26 | |||||
January | 20 | Sale | 93 | 41 | |||||
January | 25 | Purchase | 26 | 28 |
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 average-cost per unit to 3 decimal places, e.g. 12.502 and final answer to 0 decimal places, e.g. 1,250.)
LIFO | FIFO | Moving-average | ||||
Cost of goods sold | $ | $ | $ | |||
Ending inventory | $ | $ | $ | |||
Gross profit | $ | $ | $ |
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