Question: Bieber Inc. is a retailer operating in Calgary, Alberta. Bieber 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 Bieber for the month of January 2017
Instructions: (a) For each of the following cost flow assumptions, calculate
(i) cost of goods sold,
(ii) ending inventory, and
(iii) gross profit. (1) LIFO. (2) FIFO. (3) Moving-average. (Round cost per unit to three decimal places.)
(b) Compare results for the three cost flow assumptions.