3. a) Topnotch Plc began its operation on July 1, 2020. It uses a periodic inventory system. During July, the company had the following purchases and sales. Physical count shows that 1600 units are in the inventory at the end of the month. Date July 1 Descriptions Quantity Unit cost Beginning 900 units $10.00 Inventory July 08 Purchases 1300 units $11.10 July 13 Purchases 1400 units $11.30 July 15 Purchases 1900 units $11.90 July 23 Purchases 2000 units $12.00 i. Using the FIFO and LIFO method find the ending the inventory and cost of goods sold. [10 marks] ii. How perpetual system is different from a periodic system in determining the cost of goods sold? [2 marks] b) In September 2020, the balance in ABC Co's cash account on the book was $805.20. A bank statement on 30 September 2020 showed ABC Co has a balance of $1,112.30. On investigation of the difference, the following issues were established: 1. The cash account as per the book had been undervalued by $90.00 by mistake. 2. Deposit in transit by the bank on September 30 was $208.20. 3. Cheques written of $425.30 were not presented to the bank by suppliers. i. Prepare a bank reconciliation statement from the above information. [3 marks]