Pember Inc. is a retailer operating in Edmonton, Alberta. Pember 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 Pember Inc. for the month of January 2014.

Unit Cost or Date Description Quantity Selling Price Dec. 31 Ending inventory 160 $20 Jan. 2 Purchase 100 22 Jan. 6 Sale 180 40 Jan. 9 Purchase 75 24 Jan. 10 Sale 50 45 Jan. 23 Purchase 100 25 Jan. 30 Sale 130 48 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. (Round cost per unit to three decimal places.)

(b) Compare results for the three cost flow assumptions.

AppendixLO1