S Surfer Inc. is a retailer operating in Gothum, PA.
Not what you're looking for?
See attached Excel
Given info:
S Surfer Inc. is a retailer operating in Gothum, PA. S Surfer 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 S
Surfer Inc. for the month of January 2006.
Unit Cost or
Date Description Quantity Selling Price
January 1 Beginning Inventory 50 $12
January 5 Purchase 100 14
January 8 Sale 80 25
January 10 Sale return 10 25
January 15 Purchase 30 18
January 16 Purchase return 5 18
January20 Sale 90 25
January 25 Purchase 10 20
Instructions:
(a) For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending
inventory, and (iii) gross profit.
(1) LIFO. (2) FIFO. (3) Moving average cost.
(b) Compare the results for the three cost flow assumptions
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to
(a) For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending
inventory, and (iii) gross profit.
(1) LIFO. (2) FIFO. (3) Moving average cost.
(b) Compare the results for the three cost flow assumptions
Solution Preview
Problem #4
Given info:
S Surfer Inc. is a retailer operating in Gothum, PA. S Surfer 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 S
Surfer Inc. for the month of January 2006.
Unit Cost or
Date Description Quantity Selling Price
January 1 Beginning Inventory 50 $12
January 5 Purchase 100 14
January 8 Sale 80 25
January 10 Sale return 10 25
January 15 Purchase 30 18
January 16 Purchase return 5 18
January20 Sale 90 25
January 25 Purchase 10 20
Instructions:
(a) For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending
inventory, and (iii) gross profit.
(1) ...
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Introduction to Finance
This quiz test introductory finance topics.