only answer a2 please Problem 6-8A (Part Level Submission) Coronado Industries i

Question

only answer a2 please

Problem 6-8A (Part Level Submission) Coronado Industries is a retailer operating in Calgary, Alberta. Coronado Industries uses the perpetual inventory method. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Coronado Industries for the month of January 2017 Date Dec. 31 Ending inventory Jan. 2 Purchase Jan. 6 Sale Jan. 9 Purchase Jan. 10 Sale Jan. 23 Purchase an. 30 Sale Description Quantity 150 97 196 70 49 109 132 Unit Cost or Selling Price $22 24 40 26 45 27 48 (a1) Your answer is correct Calculate average cost for each unit. (Round answers to 3 decimal places, e.g. 5.125) Jan. 1 Jan. 2 22.785 Jan. 6 22.785 Jan. 9 24.645 Jan. 10 24.645 Jan. 23 26.063

Explanation / Answer

Final answer

EXPLANATION AND CALCULATIONS

LIFO Method

Gross profit = Total sales - Cost of goods sold = 16381 - 9313 = 7068

Ending Inventory = available for sale - Cost of goods sold =10391 - 9313 = 1078

FIFO Method

Gross profit = Total sales - Cost of goods sold = 16381 - 9068 = 7313

Ending Inventory = available for sale - Cost of goods sold =10391 - 9068 = 1323

Average Method

Gross profit = Total sales - Cost of goods sold = 16381 - 9114 = 7267

Ending Inventory = available for sale - Cost of goods sold =10391 - 9114 = 1277

LIFO FIFO MOV Cost of goods sold 9313 9068 9114 Endng Inventory 1078 1323 1277 Gross profit 7068 7313 7267

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