Question

Lily Inc. is a retailer operating in British Columbia. Lily 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 Lily Inc. for the month of January 2020. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $13 January 5 Purchase 147 16 January 8 Sale 113 27 January 10 Sale return 10 27 January 15 Purchase 55 18 January 16 Purchase return 5 18 January 20 Sale 94 32 January 25 Purchase 18 20

(a1) Your answer is partially correct. Try again. 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 $ Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Attempts: 5 of 5 used

(a2) Your answer is partially correct. Try again. 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 $ $ $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

Please find below table useful to compute desired results: -

2 B Particulars Given Date - January Description Quantity 1 Beginning inventory 100.00 5 Purchase 147.00 8 Sale 113.00 10 Sale return 10.00 15 Purchase 55.00 16 Purchase return 5.00 20 Sale 94.00 25 Purchase 18.00 Unit Cost or Selling Price 13.00 16.00 27.00 27.00 18.00 18.00 32.00 20.00

E н =C4 1=C5 =C7 F FIFO Date Particulars Quantity Jan. 1 Beginning Inventory =C3 Jan. 5 Purchases =C4 Jan. 8 Sales =H3 =C5-H5 Jan. 8 Net Balance =H3+H4-H5-H6 Jan. 10 Sales Return =C6 Jan. 10 Net Balance =H7+H8 Jan. 15 Purchase Jan. 16 Purchase Return =C8 Jan. 16 Net Balance =H9 =H10-H11 Jan. 20 Sales =C9 Jan. 20 Net Balance =H12-H14 =H13 Jan. 25 Purchase =C10 Jan. 25 Net Balance =H15 =H16 I=H17 Ending Inventory =H18+H19+H20 COGS =J5+J6-JS+J14 Sales =(C5-C6*D5+C9*D9 Gross Profit =H23-H22 Rate Total 19 =H3*13 22 I=H4*14 =13 =H5*15 =14 =H6*16 =14 =H7*17 =14 =H8*18 =14 =H9*19 =D7 =H10*110 =110 =H11*111 =19 =H12*112 =I10 =H13*113 =19 =H14*114 =112 =H15*115 =113 =H16*116 =D10 =H17*117 =115 =H18*118 =116 =H19*119 =117 =H20*120 =J18+J19+J20 1=C7 LM N P LIFO Date Particulars Quantity Rate Total Jan. 1 Beginning Inventory =C3 =D3 =N3*03 Jan. 5 Purchases =D4 =N4*04 Jan. 8 Sales =O4 =N5*05 Jan. 8 Net Balance =N3 =O3 =N6*06 =N4-N5 =O4 =N7*07 Jan. 10 Sales Return =C6 =O4 =N8*08 Jan. 10 Net Balance =N6 =O6 =N9*09 =N7+N8 =O4 =N10*010 Jan. 15 Purchase =D7 =N11*011 Jan. 16 Purchase Return =C8 =011 =N12*012 Jan. 16 Net Balance =N9 =09 =N13*013 =N10 =010 EN14*014 =N11-N12 =011 =N15*015 Jan. 20 Sales =N15 =015 =N16*016 =C9-N16 1=014 =N17*017 Jan. 20 Net Balance =N13 =013 =N18*018 Jan. 25 Purchase =C10 =D10 =N19*019 Jan. 25 Net Balance =N18 =018 =N20*020 =N19 =O19 =N21*021 Ending Inventory =N20+N21 =P20+P21 COGS =P5-PS+P16+P17 Sales =H23 Gross Profit =N24-N23

Q R S Date Jan. 1 Jan. 5 Particulars Beginning Inventory Purchases =D3 =C5 Jan. 8 Sales Jan. 10 Sales Return Jan 10 Net Balance Jan. 15 Purchase Jan 16 Purchase Return Jan. 16 Net Balance =D7 =D8 т V Moving Average Cost Quantity Moving Average Cost/Rate Total =C3 =T3*U3 =C4 =D4 =T4*U4 =T3+14 1=V5/T5 =V3+V4 =U5 =T6*U6 =C6 =U5 =17*U7 =T5-T6+T7 =U5 =T8*U8 =C7 =T9*U9 =C8 =T10*U10 =T8 =U8 =T11*U11 =T9-T10 =T12*U12 =T11+T12 =V13/T13 =V11+V12 =C9 =U13 =T14*U14 =T13-T14 =U13 =T15*U15 =C10 =D10 =T16*U16 | =T15 =T17*U17 =T16 =U16 =T18*U18 =T17+T18 =V19/T19 =V17+V18 =V6-V7+V14 =H23 =T21-T20 =U9 Jan. 20 Sales Jan. 20 Net Balance Jan. 25 Purchase Jan. 25 Net Balance =U15 Ending Inventory COGS Sales Gross Profit

End results would be as follows: -

L O P Date Jan. 1 Jan. 5 Jan 8 Date Jan. 1 Jan. 5 Jan. 8 Jan. 8 5 Jan. 10 Jan. 10 Jan. 8 Jan. 10 Jan. 10 Jan. 15 Jan. 16 Jan. 16 10 11 G H I J K FIFO Particulars Quantity Rate Total Beginning Inventory 100.00 19.00 1,900.00 Purchases 147.00 22.00 3,234.00 Sales 100.00 19.00 1,900.00 | 13.00 22.00 286.00 Net Balance 134.00 22.00 2.948.00 Sales Return 10.00 22.00 220.00 | Net Balance 144.00 22.00 3,168.00 Purchase 55.00 18.00 990.00 Purchase Return 5.00 18.00 90.00 Net Balance 144.00 22.00 3,168.00 | 50.00 18.00 900.00 | Sales 94.00 22.00 2.068.00 Net Balance 50.00 22.00 1,100.00 50.00 18.00 900.00 Purchase 18.00 20.00 360.00 Net Balance 50.00 22.00 1.100.00 50.00 18.00 900.00 18.00 20.00 360.00 Ending Inventory 118.00 2.360.00 COGS 4,034.00 Sales 5,789.00 Gross Profit | 1,755.00 12 Jan. 15 Jan. 16 Jan. 16 M N LIFO Particulars Quantity Beginning Inventory 100.00 Purchases 147.00 Sales 113.00 Net Balance 100.00 34.00 Sales Return 10.00 Net Balance 100.00 44.00 Purchase 55.00 Purchase Return 5.00 Net Balance 100.00 44.00 50.00 Sales 50.00 44.00 Net Balance 100.00 Purchase 18.00 Net Balance 100.00 18.00 Ending Inventory 118.00 COGS 3,252.00 Sales 5,789.00 Gross Profit 2,537.00 Rate 13.00 16.00 16.00 13.00 16.00 16.00 13.00 16.00 18.00 18.00 13.00 16.00 18.00 18.00 16.00 13.00 20.00 13.00 20.00 Total 1,300.00 2.352.00 1,808.00 1.300.00 544.00 160.00 1,300.00 704.00 990.00 90.00 1,300.00 704.00 900.00 900.00 704.00 1.300.00 360.00 1,300.00 360.00 1,660.00 Jan. 20 Jan. 20 15 Jan. 20 Jan. 25 Jan. 25 Jan. 20 Jan. 25 Jan. 25

Q V cown 10 11 12 13 R SI U Moving Average Cost Date Particulars Quantity Moving Average Cost/Rate Jan. 1 Beginning Inventory 100.00 13.00 Jan. 5 Purchases 147.00 16.00 247.00 14.79 Jan. 8 Sales 113.00 14.79 Jan. 10 Sales Return 10.00 14.79 Jan. 10 Net Balance 144.00 14.79 Jan. 15 Purchase 55.00 18.00 Jan. 16 Purchase Return 5.00 18.00 Jan. 16 Net Balance 144.00 14.79 50.00 18.00 194.00 15.61 Jan. 20 Sales 94.00 15.61 Jan. 20 Net Balance 100.00 15.61 Jan. 25 Purchase 18.00 20.00 Jan. 25 Net Balance 100.00 15.61 18.00 20.00 Ending Inventory 118.00 16.28 COGS 2,990.61 Sales 5,789.00 Gross Profit 2,798.39 Total 1,300.00 2.352.00 3.652.00 1.670.75 147.85 2.129.10 990.00 90.00 2.129.10 900.00 3.029.10 1,467.71 1.561.39 360.00 1.561.39 360.00 1.921.39 14 15 22