ChubbyInc is a retailer operating in thetown. Chubby uses the perpetual inventory method. All… 1 answer below »

ChubbyInc is a retailer operating in thetown. Chubby uses the perpetual inventory method. All ales return from the customer result in the goods being returned to inventory, the inventory is not damage. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for ChubbyInc. for the month of January 2016.

Date

Description

Quantity

Unit cost or selling price

January 1

Beginning inventory

60

$15

January 5

Purchase

110

14

January 8

Sale

90

25

January 10

Sales return

10

25

January 15

Purchase

35

18

January 16

Purchase return

10

18

January 20

Sale

90

25

January 25

Purchase

10

20

Required:

(a) For each 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 cot

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