Tempo Ltd is a retailer 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 $2020.$

For each of the following cost flow assumptions, calculates $(1)$ cost of goods sold, $(2)$ ending inventory,

$(3)$ gross profit, and $(4)$ gross profit rate.

a$.$ FIFO

b$.$ Average cost.