You are provided with the following information for Lahti Inc. for the month ended June 30, 2014. Lahti uses the periodic method for inventory.

Unit Cost or Date Description Quantity Selling Price June 1 Beginning inventory 40 $40 June 4 Purchase 13S 43 June 10 Sale 110 70 June 11 Sale return 15 70 June 18 Purchase 5) 46 June 18 Purchase return 10 46 June 25 Sale 60 WS June 28 Purchase 30 50 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.

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

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