This document provides information about inventory transactions for Pember Inc. in January 2014 including quantities, dates, descriptions, unit costs. It asks the reader to calculate average cost per unit for each period and the cost of goods sold, ending inventory, and gross profit using different cost flow assumptions: LIFO, FIFO, and moving average. Under the LIFO cost flow assumption, the cost of goods sold is calculated as $13,958, the ending inventory is 98 units at $26 per unit for $2,548, and the gross profit is $12,523. Under the FIFO assumption, the cost of goods sold is $13,272, the ending inventory is 98 units at $33 per unit for

1. dug ypl Ed thod. Al the goods b d to Pemb ting Alberta. Pemb the perp g ret he following
information for Pember Inc. for the settled in cash. You are provided wit mont of January 2014
hat th redit transa all amounts ar Quantity Dat Description Unit Cost g P Dec. 31 Ending
inventory 208 $26 Jan. 2 Purchase 130 29 Jan. 6 Sale 234 52 Jan. 9 Purchase 98 31 Jan. 10 Sale
65 59 Jan. 23 Purchase 130 33 Jan. 30 Sale 169 62 (a1) Your answer is correct. Calculate
average cost for each unit. (Round answers to 3 decimal places, e.g. 5.125.) Jan. 1 26.000 Jan. 2
27.154 Jan. 6 27.154 Jan. 9 29.020 Jan. 10 29.020 Jan. 23 30.958 Jan. 30 s 30.958 (a2) For each
of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory,
and (iii) gross profit. (Round answers to o decimal places, e.g. 125.) LIFO (2) FIFO. (3) Moving
average. LIFO FIFO Moving average Cost of goods sold Ending inventory Gross profit tory.
(Ass hat th ged tory t di Attempts: 2 of 5 used Attempts: 0 of 5 used
Solution
LIFO
Cost of Goods Sold
UNits Available for sale = 208+130+98+130 = 566
units Sold = 234+65+169 = 468
Ending Inventory = 566-468 = 98
Cost of Goods Sold
Ending Inventory = 98 x 26 = $2548
Gross Profit = total sales -COGS
Total sales = 234x52+65x59+169x62 =$26481
Gross Profit = 26481-13958 = $12523
FIFO

2. Cost of Goods Sold
UNits Available for sale = 208+130+98+130 = 566
units Sold = 234+65+169 = 468
Ending Inventory = 566- 468 = 98
Cost of Goods Sold
Ending Inventory = 98 x 33 =$3234
Gross Profit = Total sales - COGS
Gross Profit = 26481 - 13272 = $13209
Cost of Goods Sold units units Cos t total
Sale from jan 23inventory 130 33 4290
sale from jan 9 98 31 3038
sale from jan 2 130 29 3770
sale from dec 31 110 26 2860
$13958