Question

Problem 6-08A a1-a2 (Part Level Submission) Bonita Inc. is a retailer operating in British Columbia. Bonita 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 Bonita Inc. for the month of January 2020. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $12 January 5 Purchase 141 15 January 8 Sale 110 25 January 10 Sale return 10 25 January 15 Purchase 55 17 January 16 Purchase return 5 17 January 20 Sale 91 31 January 25 Purchase 17 19

(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) 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

a1) moving average cost per unit:
		quantity	cost	Value	total moving value	moving average cost per unit
1-Jan	inv	100	12	1200	1200	12
5-Jan	pur	141	15	2115	3315.00	13.76
8-Jan	sale	110	25	2750	1802.56	13.76
10-Jan	sale ret	10	25	250	1940.16	13.76
15-Jan	pur	55	17	935	2875.16	14.67
16-Jan	pur ret	5	17	85	2790.16	14.61
20-Jan	sale	91	31	2821	1461	14.61
25-Jan	pur	17	19	323	1784	15.25
a2)
COGS:
	LIFO	FIFO	MA
8-Jan	1500	1200	1376
20-Jan	1465	1365	1329.51
Total	2965	2565	2705.51
	LIFO	FIFO	MA
Ending Inventory:	1523	1923	1784
	Sales:
8-Jan	2500
20-Jan	2821
	5321
Gross Profit:
	LIFO	FIFO	MA
Sales	5321	5321	5321
Less: COGS	2965	2565	2705.51
Gross Profit	2356	2756	2615.49