ChubbyInc is a retailer operating in thetown. Chubby uses the perpetual inventory method. All ales return from the customer result in the goods being returned to inventory, the inventory is not damage. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for ChubbyInc. for the month of January 2016.
Unit cost or selling price
(a) For each 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 cot