P6-5B You are provided with the following information for Charlote Inc. for the month ended June 30,2008. Charlote uses the periodic method for inventory.

Unit Cost or Date Description Quantity Selling Price June 1 Beginning inventory 25 $60 June 4 Purchase 85 64 June 10 Sale 70 90 June 11 Sale return 10 90 June 18 Purchase 35 68 June 18 Purchase return 5 68 June 25 Sale 40 '95 June 28 Purchase 20 72 Instructions

(a) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods. (Use three decimal places for average-cost.)

(1)LIFO. (2) FIFO. (3) Average-cost.

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