*P6-8A Mercer Inc. is a retailer operating in British Columbia. Mercer 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 Mercer Inc. for the month of January 2017. Unit Cost or Date Description Quantity Selling Price January 1 Beginning inventory 100 $15 January 5 Purchase 140 January 8 Sale 110 January 10 Sale return 10 January 15 Purchase January 16 Purchase return January 20 Sale January 25 Purchase 18 28 28 Instructions (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