(Answered) Problem - mercer inc is a retailer operating in british

Accounting

Problem - 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
January 1	Beginning inventory	100	$14
January 5	Purchase	140	18
January 8	Sale	110	26
January 10	Sale return	10	26
January 15	Purchase	55	19
January 16	Purchase return	5	19
January 20	Sale	90	30
January 25	Purchase	20	21

Calculate the Moving-average cost per unit at January 1, 5, 8, 15, 20, & 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.

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