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Singer Inc. is a retailer operating in Edmonton, Alberta. Singer uses the perpet

ID: 2900728 • Letter: S

Question

Singer Inc. is a retailer operating in Edmonton, Alberta. Singer uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory. (Assume that 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 Singer Inc. for the month of January 2012.

Date Description Quantity Unit Cost or Selling Price Dec. 31 Ending inventory 272
Jan. 2 Purchase 170 37 Jan. 6 Sale 306 68 Jan. 9 Sale return 17 68 Jan. 9 Purchase 128 41 Jan. 10 Purchase return 26 41 Jan. 10 Sale 85 77 Jan. 23 Purchase 170 43 Jan. 30 Sale 221 82
Singer Inc. is a retailer operating in Edmonton, Alberta. Singer uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory. (Assume that 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 Singer Inc. for the month of January 2012.

Date Description Quantity Unit Cost or Selling Price Dec. 31 Ending inventory 272
Jan. 2 Purchase 170 37 Jan. 6 Sale 306 68 Jan. 9 Sale return 17 68 Jan. 9 Purchase 128 41 Jan. 10 Purchase return 26 41 Jan. 10 Sale 85 77 Jan. 23 Purchase 170 43 Jan. 30 Sale 221 82
Date Description Quantity Unit Cost or Selling Price

Calculate average cost for each unit. (Round answers to 3 decimal places, e.g. 5.125.) Jan. 1 Jan. 2 Jan. 6 Jan. 9 Jan. 9 Jan. 10 Jan. 10 Jan. 23 Jan. 30
Singer Inc. is a retailer operating in Edmonton, Alberta. Singer uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory. (Assume that 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 Singer Inc. for the month of January 2012.

Date Description Quantity Unit Cost or Selling Price Dec. 31 Ending inventory 272
Jan. 2 Purchase 170 37 Jan. 6 Sale 306 68 Jan. 9 Sale return 17 68 Jan. 9 Purchase 128 41 Jan. 10 Purchase return 26 41 Jan. 10 Sale 85 77 Jan. 23 Purchase 170 43 Jan. 30 Sale 221 82

Explanation / Answer

JAN 1 avg cost = 0

JAN 2 avg cost = 37/170 = 0.218

JAN 6 avg cost = 69/306= 0.225

JAN 9 avg cost = 68/17= 4.000

JAN 9 avg cost = 41/128=0.320

JAN 10 avg cost = 41/26= 1.577

JAN 10 avg cost = 77/85= 0.906

JAN 23 avg cost = 43/170= 0.253

JAN 30 avg cost = 82/221 = 0.371