Question:

Tempo Ltd. is a retailer operating in Dartmouth, Nova Scotia. Tempo 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 Tempo Ltd. for the month of January 2020.

Ignore GST

Date	Description	Quantity	Unit Cost or Selling Price
December 31	Ending inventory	150	19
January 2	Purchase	100	21
January 6	Sale	150	40
January 9	Sale return	10	40
January 9	Purchase	75	24
January 10	Purchase return	15	24
January 10	Sale	50	45
January 23	Purchase	100	26
January 30	Sale	160	50

1)Calculate (i) cost of goods sold and (ii) ending inventory under perpetual moving average cost. Round unit cost calculations to three decimal places.

Follow these format:

Date	Purchases	Cost of Goods Sold	Balance (in units and cost)

2)Calculate ending inventory and cost of goods sold under periodic FIFO. There were 60 units correctly counted in ending inventory. (Hint: Ignore sales and sales returns when creating COGA; but do not ignore purchase returns.)

Follow these format:

Date	Explanation	Units	Unit Cost	Total Cost