Question

Problem 6-08A a1-a2 Vaughn Inc. is a retailer operating in British Columbia. Vaughn 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 Vaughn Inc. for the month of January 2020. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $15 January 5 Purchase 144 18 January 8 Sale 112 30 January 10 Sale return 10 30 January 15 Purchase 55 20 January 16 Purchase return 5 20 January 20 Sale 92 35 January 25 Purchase 20 22

Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round answers to 3 decimal places, e.g. 5.251.) Moving-Average Cost per unit January 1 $ January 5 $ January 8 $ January 10 $ January 15 $ January 16 $ January 20 $ January 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 average-cost per unit to 3 decimal places, e.g. 12.502 and final answer to 0 decimal places, e.g. 1,250.) LIFO FIFO Moving-average Cost of goods sold $ $ $ Ending inventory $ $ $ Gross profit $ $ $

Answer 1

* Working Note 1