Yuan Li Ltd. is a retailer that 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 Yuan Li 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 flow assumptions.

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Date January 1 January 5 anuary8 January 10 January 15 January 16 January 20 January 25 Unit Cost or Selling Price £14 17 28 28 19 19 32 Description Quantity 100 150 110 10 2 eginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase 30