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 fl ow assumptions.

Minsoo Ltd. is a retailer operating in Edmonton, Alberta. Minsoo 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 Minsoo Ltd. for the month of January 2014.

Quantity 160 100 150 10 Date December 31 January 2 January 6 January 9 January 9 January 10 January 10 January 23 January 30 Description Ending inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale Unit Cost or Selling Price $17 21 40 40 24 24 45 28 50 80 10 60 100 110