Ticotin Inc. is a retailer operating in British Columbia. Ticotin 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 Ticotin Inc. for the month of January 2012.
|
Unit Cost or |
|||
|
Date |
Description |
Quantity |
Selling Price |
|
January 1 |
Beginning inventory |
100 |
$15 |
|
January 5 |
Purchase |
150 |
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 |
80 |
32 |
|
January 25 |
Purchase |
30 |
22 |
Instructions
(a) For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit.
(1) LIFO.
(2) FIFO.
(3) Moving average cost.
(b) Compare results for the three cost flow assumptions.