Accounting -Mercer Inc. is a retailer operating in British Columbia.

| January 30, 2017

Question
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 2014.

Date

Description

Quantity

Unit
Cost or
Selling
Price
$14

January

1

Beginning inventory

160

January

5

Purchase

224

16

January

8

Sale

176

24

January

10

Sale return

16

24

January

15

Purchase

88

18

January

16

Purchase return

January

20

Sale

January

25

Purchase

8

18

144

28

32

21

Moving average cost per unit
Jan-01
Jan-05
Jan-08
Jan-10
Jan-15
Jan-16
Jan-20
Jan-25
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

LIFO
Cost of goods sold
Ending inventory
Gross Profit

FIFO

Moving average

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

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