Question

Bramble Corp. is a retailer operating in Calgary, Alberta. Bramble Corp. 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 Bramble Corp. for the month of January 2017.

Date		Description		Quantity		Unit Cost or Selling Price
Dec. 31		Ending inventory		156		$18
Jan. 2		Purchase		109		20
Jan. 6		Sale		181		41
Jan. 9		Purchase		78		22
Jan. 10		Sale		48		46
Jan. 23		Purchase		105		23
Jan. 30		Sale		140		49

Calculate average cost for each unit.

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

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							156	18	2808
2-Jan	109	20	2180				156	18	2808
							109	20	2180
6-Jan				109	20	2180
				72	18	1296	84	18	1512
9-Jan	78	22	1716				84	18	1512
							78	22	1716
10-Jan				48	22	1056	84	18	1512
							30	22	660
23-Jan	105	23	2415				84	18	1512
							30	22	660
							105	23	2415
30-Jan				105	23	2415
				30	22	660
				5	18	90	79	18	1422
TOTAL	292		6311	369		7697	79		1422
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							156	18	2808
2-Jan	109	20	2180				156	18	2808
							109	20	2180
6-Jan				156	18	2808
				25	20	500	84	20	1680
9-Jan	78	22	1716				84	20	1680
							78	22	1716
10-Jan				48	20	960	36	20	720
							78	22	1716
23-Jan	105	23	2415				36	20	720
							78	22	1716
							105	23	2415
30-Jan				36	20	720
				78	22	1716
				26	23	598	79	23	1817
TOTAL	292		6311	369		7302	79		1817
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Jan							156	18	2808
2-Jan	109	20	2180				156	18	2808
							109	20	2180
Average							265	18.82	4988
6-Jan				181	18.82	3406	84	18.82	1582
9-Jan	78	22	1716				84	18.82	1582
							78	22	1716
Average							162	20.36	3298
10-Jan				48	20.36	977	114	20.36	2321
23-Jan	105	23	2415				114	20.36	2321
							105	23	2415
Average							219	21.63	4736
30-Jan				140	21.63	3028	79	21.63	1708
TOTAL	292		6311	369		7411	79	21.63	1708
Average cost per unit: 21.63