Blue Spruce Inc. is a retailer operating in British Columbia. Blue Spruce 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 Blue Spruce Inc. for the month of January 2020.

a. Calculate the Moving-average cost per unit at January 1, 5, 8, 15, 20, & 25.

b. For each of the following cost flow assumptions, calculate cost of goods sold, ending inventory, and gross profit. (1) LIFO. (2) FIFO. (3) Moving-average cost.

Unit Cost or Selling Price Description Quantity 140 196 154 14 Date January1 Beginning inventory January 5 Purchase January 8 Sale January 10 Sale return January 15 Purchase January 16 Purchase return January 20 Sale January 25 Purchase $15 18 28 28 20 20 32 7 126 28 (a1) Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25 Moving-Average Cost per unit January 1 January 5 January 8 January 10 January 15 January 16 January 20 January 25