BD Joiners inventory transactions for the three months ended 31 March 2013 were as follows:

\(\mathrm{BD}\) Joiners maintains its inventory records on the perpetual system, and all purchases are made on the first day of the month.
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(a) Calculate cost of goods sold, gross profit and closing inventory for the three months ended 31 March 2013 under FIFO and LIFO cost flow assumptions.

(b) With reference to your findings in (i) above, explain the effect each of the cost flow assumptions has on the statement of comprehensive income and statement of financial position in times of rising prices.

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Inventory on hand: 1/1/13 January purchases January sales Units Unit cost Unit selling price 60 30 90 34 (40) 60 50 February purchases 55 60 February sales (45) 100 March purchases March sales Inventory on hand 31/3/13 60 75 (75) 130 105