Question

Blue Spruce Corp. is a retailer operating in Calgary, Alberta. Blue Spruce uses the perpetual inventory method. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Blue Spruce for the month of January 2022. Date Description Quantity Unit Cost or Selling Price Dec. 31 Ending inventory 159 $18 Jan. 2 Purchase 102 23 Jan. 6 Sale 174 42 Jan. 9 Purchase 73 24 Jan. 10 Sale 55 48 Jan. 23 Purchase 95 25 Jan. 30 Sale 125 52 (a1) Calculate average cost for each unit. (Round answers to 3 decimal places, e.g. 5.125.)

Jan. 1 $18

Jan. 2 $19.954

Jan. 6 $19.954

Jan. 9 $21.800

Jan. 10 $21.800

Jan. 23 $23.320

Jan. 30 $23.320

(a2) For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round answers to 0 decimal places, e.g. 125.)

(1) LIFO. (2) FIFO. (3) Moving-average.

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. LIFO Purchases Cost of Goods Sold Ending Inventory Date Unit Unit Cost Total Cost Unit Unit Cost Total Cost Unit Unit Cost Total Cost Jan 1 Jan 2 102 $ 23.00 $ 2,346 159 159 102 87 $ $ $ $ 18.00 18.00 23.00 18.00 $ $ $ $ 2,862 2,862 2,346 1,566 Jan 6 102 72 $ $ 23.00 18.00 $ $ 2,346 1,296 Jan 9 73 $ 24.00 $ 1,752 Jan 10 55 $ 24.00 $ 1,320 87 73 87 18 87 18 95 $ $ $ $ $ $ $ 18.00 24.00 18.00 24.00 18.00 24.00 25.00 $ $ $ $ $ $ $ 1,566 1,752 1,566 432 1,566 432 2,375 Jan 23 95 $ 25.00 $ 2,375 Jan 30 95 18 12 $ $ $ 25.00 24.00 18.00 $ $ $ $ 2,375 432 216 7,985 75 $ 18.00 $ 1,350 354 Cost of Godos Sold Ending Inventory FIFO $ 1,350 Purchases Unit Cost Date Unit Total Cost Unit Jan 1 Jan 2 102 $ 23.00 $ 2,346 Jan 6 Jan 9 73 $ 24.00 $ 1,752 Cost of Goods Sold Ending Inventory Unit Cost Total Cost Unit Unit Cost Total Cost 159 $ 18.00 $ 2,862 159 $ 18.00 $ 2,862 102 $ 23.00 $ 2,346 159 $ 18.00 $ 2,862 - $ 18.00 $ . 15 $ 23.00 $ 345 87 $ 23.00 $ 2,001 - $ 18.00 $ 87 $ 23.00 $ 2,001 73 $ 24.00 $ 1,752 55 $ 23.00 $ 1,265 32 $ 23.00 $ 736 73 $ 24.00 $ 1,752 32 $ 23.00 $ 736 73 $ 24.00 $ 1,752 95 $ 25.00 $ 2,375 32 $ 23.00 $ 736 73 $ 24.00 $ 1,752 20 $ 25.00 $ 500 75 $ 25.00 $ 1,875 354 $ 7,460 $ 1,875 Jan 10 Jan 23 95 $ 25.00 $ 2,375 Jan 30 Cost of Godos Sold Ending Inventory Weighted Average Purchases Unit Cost Cost of Goods Sold Unit Cost Total Cost Date Unit Total Cost Unit 102 $ 23.00 $ 2,346 174 $ 19.954 $ 3,472 Ending Inventory Unit Unit Cost Total Cost 159 $ 18.000 $ 2,862.00 261 $ 19.954 $ 5,208.00 87 $ 19.954 $ 1,736.00 160 $ 21.800 $ 3,488.00 105 $ 21.800 $ 2,289.00 200 $ 23.320 $ 4,664.00 75 $ 23.320 $ 1,749.00 73 $ 24.00 $ Jan 1 Jan 2 Jan 6 Jan 9 Jan 10 Jan 23 Jan 30 Cost of Godos Sold Ending Inventory 1,752 55 $ 21.800 $ 1,199 95 $ 25.00 $ 2,375 $ 23.320 125 354 $ $ 2,915 7,586 105 $ 1,749 LIFO FIFO W A Sale Jan 6 Jan 10 Jan 30 Total Sale Less: Cost of goods sold Gross Profit 174*$42 55*$48 125*$52 $ 7,308 $ $ 2,640 $ $ 6,500 $ $ 16,448 $ $ (7,985) $ $ 8,463.00 $ 7,308 $ 7,308 2,640 $ 2,640 6,500 $ 6,500 16,448 $ 16,448 (7,460) $ (7,586) 8,988.00 $ 8,862.00