Problem:
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
December 31 / Ending inventory / 150 / $17
January 2 / Purchase / 100 / 21
January 6 / Sale / 150 / 40
January 9 / Sale return / 10 / 40
January 9 / Purchase / 75 / 24
January 10 / Purchase return / 15 / 24
January 10 / Sale / 50 / 45
January 23 / Purchase / 100 / 28
January 30 / Sale / 110 / 50
For each of the following cost flow assumptions, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Round average-cost to three decimal places)
(1) LIFO. (2) FIFO. (3) Moving-average-cost