Problem -
Indigo Corporation is a retailer operating in Calgary, Alberta. Indigo Corporation uses the perpetual inventory method. Assume that these are no credit transactions; all amounts are settled in cash. You are provided with the following information for Indigo Corporation for the month of January 2017.
|
Date
|
Description
|
Quantity
|
Unit Cost or Selling Price
|
|
Dec. 31
|
Ending inventory
|
163
|
$20
|
|
Jan. 2
|
Purchase
|
104
|
22
|
|
Jan. 6
|
Sale
|
185
|
37
|
|
Jan. 9
|
Purchase
|
70
|
24
|
|
Jan. 10
|
Sale
|
54
|
42
|
|
Jan. 23
|
Purchase
|
90
|
25
|
|
Jan. 30
|
Sale
|
123
|
45
|
For each of tie following cost flow assumptions, calculate (1) cost of goods sold, (ii) ending inventory, and (iii) gross profit.
(1) LIFO.
(2) FIFO.
(3) Moving-average.