Hector Inc. is a retailer operating in British Columbia. Hector 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 Hector Inc. for the month of

January 2019.

Date Description Quantity Unit Cost or Selling

Price($)

January 1 Beginning Inventory 100 $ 15

January 5 Purchase 150 18

January 8 Sale 110 28

January 10 Sale return 10 28

January 15 Purchase 55 20

January 16 Purchase return 5 20

January 20 Sales 80 32

January 25 Purchas 30 22

(a) For Each of the following cost flow assumption calculate

(i) LIFO

(ii) FIFO

(iii) Moving-average cost

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