Flint Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that 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 Flint Inc. for the month of January.

Date			Description		Quantity				Unit Cost or Selling Price
Dec.	31		Beginning inventory			160				$21
Jan.	2		Purchase			100				22
Jan.	6		Sale			180				42
Jan.	9		Sale return			10				42
Jan.	9		Purchase			75				25
Jan.	10		Purchase return			15				25
Jan.	10		Sale			50				47
Jan.	23		Purchase			100				26
Jan.	30		Sale			120				50

Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $21 and purchase returns had a cost of $25.)

Cost of goods sold		$
Ending Inventory		$
Gross Profit		$

Using Average method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round average cost to 3 decimal places, e.g. 5.252 and final answers to 2 decimal places, e.g 5.25.)

Cost of goods sold		$
Ending Inventory		$
Gross Profit		$

Compare results for the two cost formulas.

(1)		In a period of rising costs, the average cost formula results in the higherlower cost of goods sold and higherlowergross profit. FIFO gives the lowerhighercost of goods sold and lowerhighergross profit.
(2)		In period of rising costs, on the statement of financial position, FIFO gives the higherlower ending inventory (representing the most current costs). Average gives the higherlower ending inventory.