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*P6.8 (LO 5), AP Dempsey Inc. is a retailer operating in British Columbia. Dempsey uses the perpetual inventory system. 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 Dempsey Inc. for the month of January 2022. Unit Cost or Date Description Quantity Selling Price January 1 Beginning inventory $15 100 January 5 Purchase 140 18 January 8 Sale 110 28 January 10 Sale return 10 28 January 15 Purchase 55 20 January 16 Purchase return 20 January 20 Sale 90 32 January 25 Purchase 20 22 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 cost. (Round the weighted-average unit cost to three decimal places.) a. (iii) Gross profit: LIFO $2,160

*P6.8 (LO 5), AP Dempsey Inc. is a retailer operating in British Columbia. Dempsey uses the perpetual inventory system. 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 Dempsey Inc. for the month of January 2022. Unit Cost or Date Description Quantity Selling Price January 1 Beginning inventory $15 100 January 5 Purchase 140 18 January 8 Sale 110 28 January 10 Sale return 10 28 January 15 Purchase 55 20 January 16 Purchase return 20 January 20 Sale 90 32 January 25 Purchase 20 22 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 cost. (Round the weighted-average unit cost to three decimal places.) a. (iii) Gross profit: LIFO $2,160

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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*P6.8 (LO 5), AP Dempsey Inc. is a retailer operating in British Columbia. Dempsey uses the perpetual inventory system. 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 Dempsey Inc. for the month of January 2022. Unit Cost or Date Description Quantity Selling Price January 1 Beginning inventory 100 $15 January 5 Purchase 140 18 January 8 Sale 110 28 January 10 Sale return 10 28 January 15 Purchase 55 20 January 16 Purchase return 5 20 January 20 Sale 90 32 January 25 Purchase 20 22 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 cost. (Round the weighted-average unit cost to three decimal places.) a. (iii) Gross profit: LIFO $2,160 FIFO $2,560 Average $2,421 b. Compare results for the three cost flow assumptions.
Transcribed Image Text:*P6.8 (LO 5), AP Dempsey Inc. is a retailer operating in British Columbia. Dempsey uses the perpetual inventory system. 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 Dempsey Inc. for the month of January 2022. Unit Cost or Date Description Quantity Selling Price January 1 Beginning inventory 100 $15 January 5 Purchase 140 18 January 8 Sale 110 28 January 10 Sale return 10 28 January 15 Purchase 55 20 January 16 Purchase return 5 20 January 20 Sale 90 32 January 25 Purchase 20 22 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 cost. (Round the weighted-average unit cost to three decimal places.) a. (iii) Gross profit: LIFO $2,160 FIFO $2,560 Average $2,421 b. Compare results for the three cost flow assumptions.
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