Waterway Inc. is a retailer operating in British Columbia. Waterway 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 Waterway Inc. for the month of January 2027. Description Date Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $13 January 5 Purchase 139 16 January 8 Sale 111 27 January 10 Sale return 10 27 January 15 Purchase 55 55 18 January 16 Purchase return 5 18 2 00 00 January 20 Sale 88 January 25 Purchase 18 80 00 31 20 (a1) (a2) For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost. (Round average-cost per unit to 3 decimal places, e.g. 12.502 and final answer to O decimal places, e.g. 1,250.) Cost of goods sold $ Ending inventory $ Gross profit $ LIFO +A $ $ $ +A FIFO $ $ $ Moving-average
Waterway Inc. is a retailer operating in British Columbia. Waterway 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 Waterway Inc. for the month of January 2027. Description Date Quantity Unit Cost or Selling Price January 1 Beginning inventory 100 $13 January 5 Purchase 139 16 January 8 Sale 111 27 January 10 Sale return 10 27 January 15 Purchase 55 55 18 January 16 Purchase return 5 18 2 00 00 January 20 Sale 88 January 25 Purchase 18 80 00 31 20 (a1) (a2) For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost. (Round average-cost per unit to 3 decimal places, e.g. 12.502 and final answer to O decimal places, e.g. 1,250.) Cost of goods sold $ Ending inventory $ Gross profit $ LIFO +A $ $ $ +A FIFO $ $ $ Moving-average
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Waterway Inc. is a retailer operating in British Columbia. Waterway 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 Waterway Inc. for the month of January 2027.
Description
Date
Quantity
Unit Cost or Selling Price
January 1
Beginning inventory
100
$13
January 5
Purchase
139
16
January 8
Sale
111
27
January 10
Sale return
10
27
January 15
Purchase
55
55
18
January 16
Purchase return
5
18
2 00 00
January 20
Sale
88
January 25
Purchase
18
80 00
31
20
(a1)
(a2)
For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO.
(3) Moving-average cost. (Round average-cost per unit to 3 decimal places, e.g. 12.502 and final answer to O decimal places, e.g. 1,250.)
Cost of goods sold
$
Ending inventory
$
Gross profit
$
LIFO
+A
$
$
$
+A
FIFO
$
$
$
Moving-average
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