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Unformatted text preview: 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 Persephone Inc. for the month of January 2008. Date Description Quantity Unit Cost or Selling Price January 1 Beginning inventory 50 $60 January 5 Purchase 100 70 January 8 Sale 80 125 January 10 Sale return 10 125 January 15 Purchase 30 90 January 16 Purchase return 5 90 January 20 Sale 75 125 January 25 Purchase 10 100 Instructions (a) For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round moving-average-cost to three decimal places.) (1) LIFO. (2) FIFO (3) Moving-average-cost. (b) Compare results for the three cost flow assumptions....
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- Spring '11
- Financial Accounting