Answer:
Date Description Quantity Unit Cost Total Cost
<em>Jan 1 Beginning inventory 280 $14 $ 3920</em>
<em>Jan 5 Purchase 392 $17 $ 6644</em>
Jan 8 Sale 308 $28 $ 8624
Jan 10 Sale return 28 $28 $ 784
<em>Jan 15 Purchase 154 $20 $ 3080</em>
<em>Jan 16 Purchase return 14 $20 $ 280</em>
Jan 20 Sale 252 $31 $ 7812
<em><u>Jan 25 Purchase 56 $22 $ 1232</u></em>
<em>Total Units 868 at $ 14596</em>
<em>Average Cost = $ 16.82</em>
<em><u /></em>
<em><u>Moving Average Cost Method</u></em>
Date Description Quantity Unit Cost Balance
Jan 1 Beginning inventory 280 $14 <em> $ 3920</em>
<u>Jan 5 Purchase 392 $17 </u><u><em>$ 6644</em></u>
Units 672 $ 10564 15.72
<u>Jan 8 Sale 308 $28 $ 8624</u>
Units 364 15.72 5722.17
Jan 10 Sale return 28 $28 $ 784
<u>Jan 15 Purchase 154 $20 $3080</u>
Units 546 9586.17 17.55
Jan 16 Purchase return 14 $20 $280
<u>Jan 20 Sale 252 $31 $7812</u>
Units 280 17.55 4914
<u>Jan 25 Purchase 56 $22 $1232</u>
<u>Units 336 6146 $ 18.29</u>
<em>Moving-average cost Ending Inventory= $ 6164</em>
Ending Units 336
FIFO Ending Inventory = $ 6454
56 units at $22 = $ 1232
154 units at $20 = $ 3080
126 units at $17 = $ 2142
LIFO Ending Inventory = $ 4872
280 units at $14 = $ 3920
56 units at $17 = $ 952
Gross Profit Inventory = $ 16.82 * 336= $ 5651.52
Moving Average Cost = 336* 18.29= $ 6146
FIFO Cost of Goods Sold= Total Sales - Ending Inventory FIFO
=8624-784+ 7812- 6454
=15652- 6454= $ 9198
LIFO Cost of Goods Sold= Total Sales - Ending Inventory LIFO
= 15652- 4872=$ 10780
Gross Profit Cost of Goods Sold= Total Sales - Ending Inventory Gross Profit =15652- 5651.52= $ 10,000.48
<em>Moving-average cost </em>Cost of Goods Sold= Sales - <em>Ending Inventory= </em>
<em>15652-$ 6164= $ 9488</em>
Gross Profit:
1) LIFO= 4872
2) FIFO= 6454
3) Moving Average<em> </em>6164
