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.

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 results for the three cost flowassumptions.

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Unit Cost or Date Description Quantity Selling Price January Bginning inventory January 5 Prchase January 8 Sale January 10 January 15 Purchase January 16 Purchase return January 20 January 25 Purchase 100 140 110 10 $15 18 28 28 20 20 32 Sale return Sale 20