Moving average cost 1 answer below »

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 2014
Date
Description
Quantity
Unit Cost or Selling PriceJanuary1
Beginning inventory

200
$12January5
Purchase
280
15January8
Sale
220
25January10
Sale return
20
25January15
Purchase
110
17January16
Purchase return
10
17January20
Sale
180
27January25
Purchase
40
19
Calculate the Moving-average cost per unit at January 1, 5, 8, 15, 20, & 25
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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