Problem 6-8A (Part Level Submission) Mercer Inc. is a retailer operating in British Columbia. Mercer...
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Accounting
Problem 6-8A (Part Level Submission)
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 2015.
Date
Description
Quantity
Unit Cost or Selling Price
January
1
Beginning inventory
100
$15
January
5
Purchase
140
18
January
8
Sale
110
28
January
10
Sale return
10
28
January
15
Purchase
55
20
January
16
Purchase return
5
20
January
20
Sale
90
32
January
25
Purchase
20
22
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.)
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