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Problem 6-8A (Part Level Submission) Mercer Inc. is a retailer operating in British Columbia. Mercer...

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Accounting

Problem 6-8A (Part Level Submission)

Mercer Inc. is a retailer operating in British Columbia. Mercer uses the perpetual inventory method. 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 Mercer Inc. for the month of January 2015.

Date

Description

Quantity

Unit Cost or 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

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 answers to 0 decimal places, e.g. $2,150.)

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