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 2019.

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. (Round average cost per unit to three decimal places.)
(b) Compare results for the three cost flow assumptions.

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Unit Cost or Selling Price $15 18 28 28 20 20 32 Date Description Quantity 100 140 110 10 January Beginning inventory January 5 Purchase anuary8 January 10 January 15 Purchase January 16 January 20 January 25 Sale return Purchase return Sale Purchase 90 20