6.8 LO 5 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 2020 Calculate cost of goods sold and ending inventory for FIFO and moving average cost under the perpetual system; compare gross profit under each assumption. Description Quantity Date Unit Cost or Selli ice December 31 Ending inventory 19 21 40 40 24 24 45 26 50 150 100 150 10 75 15 50 100 160 Purchase January 2 January 6 January 9 January 9 January 10 January 10 January 23 January 30 Sale Sale return Purchase Purchase return Sale Purchase Sale Instructions a. For each of the following cost flow assumptions, calculate(i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. 1. FIFO 2. Moving-average cost. (iii) Gross profit: FIFO 8,420 Average 8,266 b. Compare results for the two cost flow assumptions