Problem 6-8A Wildhorse Co. is a retailer operating in Calgary, Alberta. Wildhors

Question

Problem 6-8A Wildhorse Co. is a retailer operating in Calgary, Alberta. Wildhorse Co. uses the perpetual inventory method Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Wildhorse Co. for the month of January 2017. Date Dec. 31 Jan. 2 Jan. 6 Jan. 9 Jan. 10 Jan. 23 Jan. 30 Description Ending inventory Purchase Sale Purchase Sale Purchase Sale Quantity 148 98 184 80 52 94 130 Unit Cost or Selling Price $22 39 26 27 47 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. 10 Jan. 23 Jan. 30

Explanation / Answer

Average cost for each unit: 1-Jan $22 2-Jan 22.797 (148*22+98*24)/(148+98) 6-Jan 22.797 9-Jan 24.603 (62*22.8+80*26)/(62+80) 10-Jan 24.603 23-Jan 25.826 (90*24.6+94*27)/(90+94) 30-Jan 25.826 LIFO FIFO Moving Avg COGS 10226-1188=9038 10226-1458=8768 10226-1394.60=8831.4 Ending Invent 54*22=1188 54*27=1458 54*25.826=1394.6 GP 15574-9038=6536 15574-8768=6806 15574-8831.40=6742.60

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