Yemi Ltd. is a retailer operating in Edmonton, Alberta. Yemi 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 Yemi Ltd. for the month of January 2012.

Instructions(a) 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.(b) Compare results for the three cost flowassumptions.

Unit Cost or Date Description Quantity Selling Price Ending inventory $17 December 31 150 January 2 January 6 January 9 January 9 January 10 January 10 January 23 January 30 Purchase 100 21 Sale 150 40 Sale return 10 40 Purchase 75 24 Purchase return 15 24 Sale Purchase 50 45 100 28 Sale 110 50