Indigo Corporation is a retailer operabng in Calgary, Alberta. Indigo Corporatio
ID: 2537534 • Letter: I
Question
Indigo Corporation is a retailer operabng in Calgary, Alberta. Indigo Corporation for the month af lanuary 2017 uses the perpetual inventory method. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the folowing information for Indigo Date Dec. 31 Endng inventory an. 2 Purchase lan. 6Sale lan. g purchas an 10 Sala a. 23 Purchase Quantity Unit Cost or Selling Price $20 104 e0 25 30 Sale 123 45 Calculate average cost tor each unt. (Round answers to 3 decimal places, e.g. 5.125.) an. 1 Jan. 2 an, 6 Jan. 9 an. 10 Jan. 23 an. 30 20.78 20.78 LTST OF ACOOUNTS kr each af the followinq cost flow assumptions, calculate ) oast of goods sold, (i) endnq Inventory, and ) qross profit. (Round answers to O decimal places eq 12.5.) (1 LIFO (2) FIFO (3) Moving-average. LIFO Moving-average Cost of gonds sold Ending inventary Gross prafitExplanation / Answer
Solution 1:
Therefore average cost:
Jan 1 = $20
Jan 2 = $20.78
Jan 6 = $20.78
Jan 9 = $22.26
Jan 10 = $22.26
Jan 23 = $23.57
Jan 30 = $23.57
Solution 2:
Computation of ending inventory COGS under Moving Average Cost Date Opening Stock Receiving Issue Closing Stock Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 1-Jan 163 $20.00 $3,260 0 $0.00 $0 0 $0.00 $0 163 $20.00 $3,260 2-Jan 163 $20.00 $3,260 104 $22.00 $2,288 0 $0.00 $0 267 $20.78 $5,548 6-Jan 267 $20.78 $5,548 0 $0.00 $0 185 $20.78 $3,844 82 $20.78 $1,704 9-Jan 82 $20.78 $1,704 70 $24.00 $1,680 0 $0.00 $0 152 $22.26 $3,384 10-Jan 152 $22.26 $3,384 0 $0.00 $0 54 $22.26 $1,202 98 $22.26 $2,182 23-Jan 98 $22.26 $2,182 90 $25.00 $2,250 0 $0.00 $0 188 $23.57 $4,432 30-Jan 188 $23.57 $4,432 0 $0.00 $0 123 $23.57 $2,899 65 $23.57 $1,532 Total $7,946 $1,532