Morse Inc. is a retail company that uses the perpetual inventory

method. Assume that there are no credit transactions; all amounts are

settled in cash. You have the following information for Morse Inc. for

the month of January 2014.

Unit Cost or

Date Description Quantity Selling Price

Dec. 31 Ending inventory 140 $14

Jan. 2 Purchase 120 15

Jan. 6 Sale 150 30

Jan. 9 Purchase 85 17

Jan. 10 Sale 70 35

Jan. 23 Purchase 100 20

Jan. 30 Sale 110 42

Instructions (a) For each of the following cost flow assumptions (1)

LIFO. (2) FIFO. (3) Moving-average. (Round cost per unit to three

decimal places.) calculate (i) cost of goods sold, (ii) ending inventory,

and (iii) gross profit.