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

Date January 1 January 5 January 8 January 10 January 15 January 16 January 20 January 25 Instructions

(a) For each of the following cost flow assumptions, calculate (i) cost of goods sold, Unit Cost or Description Quantity Selling Price Beginning inventory 100 $14 Purchase 150 17 Sale 110 28 Sale return 10 28 Purchase Ss) 19 Purchase return 5 19 Sale 80 32 Purchase 30 22

(ii) ending inventory, and (iii) gross profit.

C))LIFO. (2), FIFO: (3) Moving-average cost.

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