What is the solution of this question? Tempo Ltd. is a retailer operating in Dartmouth, NovaScotia. Tempo uses the perpetual inventory method. Allsales returns from customers result in the goods beingreturned to inventory; the inventory is not damaged.Assume that there are no credit transactions; all amountsare settled in cash. You are provided with the followinginformation for Tempo Ltd. for the month of January 2014.Unit Cost orSelling PriceDescriptionEnding inventoryPurchaseDateQuantityDecember 31150$19January 2January 6January 9January 9January 10January 10January 23January 3010021SaleSale return150401040Purchase751524Purchase returnSalePurchaseSale2450452650100160Instructions(a) For each of the following cost flow assumptions, calculate(i) cost of goods sold, (ii) ending inventory, and (iii) grossprofit.(1) LIFO.(2) FIFO.(3) Moving-average cost.(b) Compare results for the three cost flowassumptions.

The cost of goods sold is calculated by adding the beginning inventory and purchases to obtain the…

Tempo Ltd. is a retailer operating in Dartmouth, Nova Scotia. Tempo 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 Tempo Ltd. for the month of January 2014. Unit Cost or Selling Price Date Description Ending inventory Purchase Quantity December 31 150 $19 January 2 January 6 January 9 January 9 January 10 January 10 January 23 January 30 100 21 Sale 150 40 Sale return 10 40 Purchase 75 24 Purchase return 15 24 Sale 50 45 Purchase Sale 100 26 160 50 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.