Weston’s Washers Ltd buys and sells brand‐name washing machines, which are identified by the manufacturer’s initials and model number. Ignore GST.

The inventory on 1 July 2019 is as follows.

Weston’s Washers Ltd uses the specific identification method to account for its inventory. All transactions were on credit and the unit cost of purchases and per‐unit selling price for July were the same as given for the beginning inventory.

Required

(a) Prepare entries to record the 8 July purchase and the 20 July sale under the periodic inventory system method.

(b) Calculate the cost of sales for July.

(c) Calculate the cost of ending inventory on 31 July 2019.

(d) Prepare an income statement for July based on the periodic inventory system.

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Identification number Quantity Unit cost Selling price WES301 EMA4256 F&P111 KEL633 MAL720 34435 $880 $1150 920 1350 800 1199 700 900 600 800 Purchases and sales for July follow. 15891522 Purchased 3 KEL633. July 1 Sold 2 EMA4256. Purchased 4 WES301. Sold 3 MAL720. Sold 1 F&P111. Purchased 6 EMA4256. 20 Sold 2 KEL633. 23 Sold 5 WES301.