Question

In: Accounting

Windsor, Inc. is a retailer operating in Calgary, Alberta. Windsor uses the perpetual inventory method. Assume...

Windsor, Inc. is a retailer operating in Calgary, Alberta. Windsor 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 Windsor for the month of January 2022.

Date

Description

Quantity

Unit Cost or Selling Price

Dec. 31

Ending inventory

165 $20

Jan. 2

Purchase

99 21

Jan. 6

Sale

200 40

Jan. 9

Purchase

81 24

Jan. 10

Sale

65 44

Jan. 23

Purchase

100 26

Jan. 30

Sale

130 47

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.

Solutions

Expert Solution

1 Date Opening Inventory Opening Inventory Opening Inventory Sale Sale Sale Closing Inventoy Closing Inventoy Closing Inventoy LIFO METHOD
Unit Rate Value Unit Rate Value Unit Rate Value
31-Dec 165 20 3300 - - - 165 20 3300
2-Jan 99 21 2079 - - - (165+99) (20 +21) 5379
6-Jan - - - (101+99) 40 8000 (64+0) (20+21) 1280
9-Jan 81 24 1944 - - - (64+0+81) (20+21+24) 3224
10-Jan - - - (0+0+65) 44 2860 (64+0+16) (20+21+24) 1664
23-Jan 100 26 2600 - - - (64+0+16+100) (20+21+24+26) 4264
30-Jan - - - (14+0+16+100) 47 6110 (50+0+0+0) (20+21+24+26) 1000
9923 16970 1000
2 Date Opening Inventory Opening Inventory Opening Inventory Sale Sale Sale Closing Inventoy Closing Inventoy Closing Inventoy FIFO METHOD
Unit Rate Value Unit Rate Value Unit Rate Value
31-Dec 165 20 3300 - - - 165 20 3300
2-Jan 99 21 2079 - - - (165+99) (20 +21) 5379
6-Jan - - - (165+35) 40 8000 (0+64) (20+21) 1344
9-Jan 81 24 1944 - - - (0+64+81) (20+21+24) 3288
10-Jan - - - (0+64+1) 44 2860 (0+0+80) (20+21+24) 1920
23-Jan 100 26 2600 - - - (0+0+80+100) (20+21+24+26) 4520
30-Jan - - - (0+0+80+50) 47 6110 (0+0+0+50) (20+21+24+26) 1300
9923 16970 1300
3 Date Opening Inventory Opening Inventory Opening Inventory Sale Sale Sale Closing Inventoy Closing Inventoy Closing Inventoy Moving Average
Unit Rate Value Unit Rate Value Unit Rate Value
31-Dec 165 20 3300 - - - 165 20 3300
2-Jan 99 21 2079 - - - (165+99) 20 5280
6-Jan - - -

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