Question 3)

Question 4)

Waterway Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases. Date Number of Units Unit Price $9 54 May 7 July 28 29 13 On June 1. Waterway sold 24 units, and on August 27.41 more units. (a) Your answer is partially correct. Prepare the perpetual inventory schedule for the above transactions using FIFO. Product E2-D2 Cost of Goods Sold Date Purchases Balance May 7 $ 486 $ $ 486 June 1 $ $ 240 S 246 July 28 377 $ 623 Aug 27 $ $ $ Sheridan Inc. is a retailer operating in Centralia. Sheridan uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory. (Assume that 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 Sheridan Inc for the month of January 2017 Date Description Ending inventory Purchase Dec. 31 Unit Cost or Quantity Selling Price 224 $12 Jan. 2 192 13 Jan. 6 Sale 240 33 Jan. 9 Purchase 136 14 Jan. 10 Sale 112 38 Jan. 23 Purchase 160 18 Jan. 30 Sale 176 44 (a) For each of the following cost flow assumptions, calculate (1) cost of goods sold, (ii) ending inventory, and (ii) gross profit (1) FIFO. (2) FIFO. (3) Moving-average. (Round average cost per unit to 3 decimal places, e.g. 1.286 and final answers to decimal places, eg. 5,125.) LIFO FIFO Moving-average Cost of goods sold $ 7744 $ 6752 $ 7153.760 Ending inventory $ 2224 $ 3216 $ 2814.464 Gross profit $ 5520 $ 3536 $ 4339.296