Reference no: EM132561144

Hector Inc. is a retailer operating in British Columbia. Hector 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 Hector Inc. for the month of January 2019.

Date                  Description                 Quantity                Unit Cost or Selling Price($)

January 1           Beginning Inventory        100                        $ 15

January 5               Purchase                     150                       18

January 8                    Sale                             110                    28

January 10                     Sale return                  10                       28

January 15                          Purchase                55                          20

January 16                         Purchase return           5                         20

January 20                          Sales                         80                         32

January 25                            Purchas                      30                        22

Question (a) For Each of the following cost flow assumption calculate

(i) LIFO

(ii) FIFO

(iii) Moving-average cost

Question (b) Compare results for the three cost flow assumption.