Blue Spruce Inc. is a retailer operating in British Columbia. Blue Spruce uses the perpetual...
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Accounting
Blue Spruce Inc. is a retailer operating in British Columbia. Blue Spruce 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 Blue Spruce Inc. for the month of January 2020.
a. Calculate the Moving-average cost per unit at January 1, 5, 8, 15, 20, & 25.
b. 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.
Unit Cost or Selling Price Description Quantity 140 196 154 14 Date January1 Beginning inventory January 5 Purchase January 8 Sale January 10 Sale return January 15 Purchase January 16 Purchase return January 20 Sale January 25 Purchase $15 18 28 28 20 20 32 7 126 28 Unit Cost or Selling Price Description Quantity 140 196 154 14 Date January1 Beginning inventory January 5 Purchase January 8 Sale January 10 Sale return January 15 Purchase January 16 Purchase return January 20 Sale January 25 Purchase $15 18 28 28 20 20 32 7 126 28
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