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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

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 2019.

Date Description Quantity Selling Price

December 31 Ending inventory 160 $17

January 2 Purchase 100 21

January 6 Sale 150 40

January 9 Sale return 10 40

January 9 Purchase 80 24

January 10 Purchase return 10 24

January 10 Sale 60 45

January 23 Purchase 100 28

January 30 Sale 110 50

(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. (Round average cost per unit to 3 decimal places.)

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

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