2. 26 Marks Queenstown Ltd began its operations on 1 May 2015. It uses a perpetual inventory system. During July the business had the following purchases and sales: Date Units May 1 600 May 12 May 24 400 May 29 Purchases Unit cost Sales units $100 500 $105 300 a. Calculate the ending inventory at the end of May using FIFO. b. Calculate the ending inventory at the end of May using LIFO. [4 marks] C. Calculate the ending inventory at the end of May using average cost. [4 marks] d. Peter Smith is the CFO of Queenstown Ltd. and his bonus is based on the company's net profit, which inventory cost flow method would he prefer based on the purchase information given in May? Explain. [4 marks] e. Provide the journal entries for the purchase made on 1 May 2015 and sales made on 12 May 2015. Sale price is $200 per unit (Assuming all purchases and sales were on credits and there is no GST) [6 marks] f. As a new accounting graduate hired by Queenstown Ltd., Peter Smith (CFO) told you that you should delay payments to suppliers. However, he instructs you to date all cheques the last day of the discount period in order to take advantage of all settlement discounts. He wants you to send all the cheques a few days after the discount period. What is your ethical dilemma and what actions can you take so that you will not compromise your ethics? [4 marks]