Moving average cost


Question Description:

25

Mercer Inc. is a retailer operating in British Columbia. Mercer 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 Mercer Inc. for the month of January 2014 Date Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 200 $12 January 5 Purchase 280 15 January 8 Sale 220 25 January 10 Sale return 20 25 January 15 Purchase 110 17 January 16 Purchase return 10 17 January 20 Sale 180 27 January 25 Purchase 40 19 Calculate the Moving-average cost per unit at January 1, 5, 8, 15, 20, & 25 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 answers to 0 decimal places, e.g. $2,150.)

Answer

25