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 2017.

Instructions
(a) For each of the following cost flow assumptions, calculate
(i) Cost of goods sold,
(ii) Ending inventory, and
(iii) Gross profit.
(1) FIFO.
(2) Moving-average cost.
(b) Compare results for the two cost fl ow assumptions.

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Unit Cost or Date Description Quantity Selling Price £19 21 40 40 December January 2 January 6 January 9 January 9 January 10 January 10 January 2.3 January 30 Ending inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale 150 100 150 10 75 15 50 100 160 45 26 50