4 Matthew Inc. is a retailer operating in Dartmouth, Nova Scotia, Matthew 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 Matthew Inc. for the month of January 2006. Date January 1 January 5 January 8 January 10 January 15 January 16 January 20 January 25 Instructions Description Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Quantity 50 100 80 10 30 5 90 10 Unit Cost or Selling Price $ 12 14 25 25 18 18 25 20 (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 (b) Compare results for the three cost flow assumption. (3) Moving average cost

Matthew Inc. is a retailer operating in Dartmouth, Nova Scotia, Matthew uses the perpetual inventory method. All sales retums 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 Matthew Inc. for the month of January 2006. 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 assumption