Tempo Ltd. is a retailer operating in Dartmouth, Nova Scotia. Tempo 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 Tempo Ltd. for the month of January 2014.

Unit Cost or Date Description Quantity Selling Price December 31 Ending inventory 150 $19 January 2 Purchase 100 21 January 6 Sale 150 40 January 9 Sale return 10 40 January 9 Purchase 13 24 January 10 Purchase return tS 24 January 10 Sale 50 45 January 23 Purchase 100 26 January 30 Sale 160 50 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 flow assumptions.