Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 6-08A al-a2 (Part Level Submission) Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory method. All sales returns fre

image text in transcribed
image text in transcribed
image text in transcribed
Problem 6-08A al-a2 (Part Level Submission) Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory method. All sales returns fre result in the goods being returned to inventory: the inventory is not damaged. Assume that there are no credit transactions; are settled in cash. You are provided with the following information for Waterway Inc. for the month of January 2020. Unit Cost or Date Description Quantity Selling Price January 1 Beginning inventory 100 $13 January 5 Purchase 139 16 January 8 Sale 111 27 January 10 Sale return 10 27 January 15 Purchase 55 18 January 16 Purchase return 18 January 20 Sale 31 January 25 Purchase 18 20 5 88 Calculate the Moving average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round answers to 3 decimal places, e.g. 5.251.) Moving Average Cost per unit January 1 13.00 January 5 14.745 January 8 14,745 5 January 10 14.745 January 15 15,672 dy January 16 15.61 January 20 15.51 January 25 (a2) 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, eg 1,250.) FIFO Moving average Cost of goods sold LIFO Ending inventory Gross profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngren S Financial And Managerial Accounting The Managerial Chapters

Authors: Tracie L. Miller-Nobles ,Brenda L. Mattison ,Ella Mae Matsumura

4th Edition

0133255433, 978-0133255430

More Books

Students also viewed these Accounting questions