Q1. Rosario Department Store uses a perpetual inventory system. Data for product E2-D2 include the following purchases.
|
Date
|
Number of Units
|
Unit Price
|
|
May 7
|
183
|
$10
|
|
July 28
|
110
|
13
|
On June 1, Rosario sold 95 units, and on August 27, 146 more units.
Required -
Prepare the perpetual inventory schedule for the above transactions using FIFO.
Prepare the perpetual inventory schedule for the above transactions using LIFO.
Prepare the perpetual inventory schedule for the above transactions using moving-average cost.
Prepare the perpetual inventory schedule for the above transactions using moving-average cost.
Q2. Dempsey Inc. is a retailer operating in British Columbia. Dempsey 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 Dempsey Inc. for the month of January 2017.
|
Date
|
Description
|
Quantity
|
Unit Cost or Selling Price
|
|
January 1
|
Beginning inventory
|
100
|
$15
|
|
January 5
|
Purchase
|
143
|
18
|
|
January 8
|
Sale
|
112
|
28
|
|
January 10
|
Sale return
|
10
|
28
|
|
January 15
|
Purchase
|
55
|
20
|
|
January 16
|
Purchase return
|
5
|
20
|
|
January 20
|
Sale
|
91
|
33
|
|
January 25
|
Purchase
|
20
|
22
|
Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20 & 25.
Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25.
For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) UFO. (2) FIFO. (3) Moving-average cost.
Q3. Wittmann Co. began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales.
|
Date
|
Purchases
|
|
|
Units
|
Unit Cost
|
Sales Units
|
|
July 1
|
85
|
$122
|
|
|
July 6
|
|
|
51
|
|
July 11
|
119
|
$136
|
|
|
July 14
|
|
|
85
|
|
July 21
|
136
|
$147
|
|
|
July 27
|
|
|
85
|
Calculate the average cost per unit at July 1, 6, 11, 14, 21 & 27.
Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.