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Vasquez Ltd. is a retailer operating in Edmonton, Alberta. Vasquez 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 Vasquez Ltd. for the month of January 2008. Date Description Quantity Unit Cost or Selling Price December 31 Ending inventory 150 $20 January 2 Purchase 100 25 January 6 Sale 150 42 January 9 Sale return 10 42 January 9 Purchase 75 30 January 10 Purchase return 15 30 January 10 Sale 50 48 January 23 Purchase 100 32 January 30 Sale 110 51 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
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