Question

perpetual inventory method. All ales return from the customer result in the goods being returned to inventory, the inventory is not damage. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Chewy Inc. for the month of January 2018 Date Description Quantity Unit cost or selling price January 1 Beginning inventory January 5 Purchase January 8 Sale January 10 Sales returr January 15 Purchase January 16 Purchase return January 20 Sale January 25 Purchase 60 110 90 10 35 10 90 10 S15 25 25 18 18 25 20 Required: (a) For each the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory and (iii) gross profit. (1) LIFO cot (2) FIFO (3) Moving-average

Answer 1

To calculate cost of goods sold and ending inventory ,there are many methods

• FIFO (first in first out)
• LIFO(last in first out)
• Weighted average