Pember Inc. is a retailer operating in Edmonton, Alberta. Pember uses the perpet
ID: 2499173 • Letter: P
Question
Pember Inc. is a retailer operating in Edmonton, Alberta. Pember 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 Pember Inc. for the month of January 2014.
Date
Description
Quantity
Unit Cost or Selling Price
62For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round answers to 0 decimal places, e.g. 125.)
LIFO
FIFO
Moving-average
Date
Description
Quantity
Unit Cost or Selling Price
Dec. 31 Ending inventory 208 $26 Jan. 2 Purchase 130 29 Jan. 6 Sale 234 52 Jan. 9 Purchase 98 31 Jan. 10 Sale 65 59 Jan. 23 Purchase 130 33 Jan. 30 Sale 16962For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round answers to 0 decimal places, e.g. 125.)
LIFO
FIFO
Moving-average
Cost of goods sold $ $ $ Ending inventory $ $ $ Gross profit $ $ $Explanation / Answer
1) LIFO Date Description Quantity Unit Cost or Selling Price Cost of goods sold Inventory Units Value Total Units Value Total Dec. 31 Ending inventory 208 $26 208 26 5408 Jan. 2 Purchase 130 29 208 26 5408 130 29 3770 Jan. 6 Sale 234 52 130 29 3770 104 26 2704 104 26 2704 Jan. 9 Purchase 98 31 104 26 2704 98 31 3038 Jan. 10 Sale 65 59 65 31 2015 104 26 2704 33 31 1023 Jan. 23 Purchase 130 33 104 26 2704 33 31 1023 130 33 4290 Jan. 30 Sale 169 62 130 33 4290 98 26 2548 33 31 1023 6 26 156 Total 468 13958 98 2548 Sale Value = (234* 52 + 65 * 59 + 169 *62) = 26481 Cost of goods sold = 13958 Ending Inventory = 2548 Gross Profit = Sales - Cost of goods sold = 26481 - 13958 = 12523 2) FIFO Date Description Quantity Unit Cost or Selling Price Cost of goods sold Inventory Units Value Total Units Value Total Dec. 31 Ending inventory 208 $26 208 26 5408 Jan. 2 Purchase 130 29 208 26 5408 130 29 3770 Jan. 6 Sale 234 52 208 26 5408 26 29 754 104 29 3016 Jan. 9 Purchase 98 31 104 29 3016 98 31 3038 Jan. 10 Sale 65 59 65 29 1885 39 29 1131 98 31 3038 Jan. 23 Purchase 130 33 39 29 1131 98 31 3038 130 33 4290 Jan. 30 Sale 169 62 39 29 1131 98 33 3234 98 31 3038 32 33 1056 Total 468 13272 98 3234 Cost of goods sold = 13272 Ending Inventory = 3234 Gross Profit = Sales - Cost of goods sold = 26481 - 13272 = 13209 3) Moving avarage Date Description Quantity Unit Cost or Selling Price Cost of goods sold Inventory Units Value Total Units Value Total Dec. 31 Ending inventory 208 $26 208 26 5408 Jan. 2 Purchase 130 29 338 27.18 9186.84 REFER WORKING BELOW Jan. 6 Sale 234 52 234 27.18 6360.12 104 27.18 2826.72 Jan. 9 Purchase 98 31 202 29.03 5864.06 REFER WORKING BELOW Jan. 10 Sale 65 59 65 29.03 1886.95 137 29.03 3977.11 Jan. 23 Purchase 130 33 267 30.96 8266.32 REFER WORKING BELOW Jan. 30 Sale 169 62 169 30.96 5232.24 98 30.96 3034.08 Total 468 13479.31 98 3034.08 Moving avarage A B C=A*B 2-Jan 200 26 5200 130 29 3770 Total 330 8970 Average = Total C / Total A 27.18 9-Jan 104 27.18 2826.72 98 31 3038 Total 202 5864.72 Average = Total C / Total A 29.03 23-Jan 137 29.03 3977.11 130 33 4290 Total 267 8267.11 Average = Total C / Total A 30.96 Cost of goods sold = 13479.31 Ending Inventory = 3034.08 Gross Profit = Sales - Cost of goods sold = 26481 - 13479.31 = 13001.69 LIFO FIFO Moving Average Cost of goods sold 13958 13272 13479.31 Ending inventory 2548 3234 3034.08 Gross profit 12523 13209 13001.69
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.