3. Inventory Costing and Journal Entries (18 marks) a) Warmer Corporation's accounting records disclosed the following information regarding purchases of inventory item no. 329 during May: (5 marks) Total Cost $505 $440 $1,080 $275 Unit CostTo Date May 1 May Units 50 40 $10.10 Beginning Inventory Purchase $12.00 $13.75 Purchase May 21 20 On May 15, Widmer sold 150 units at a price of $16.10 each. i) Assume Waner Corporation uses a perpetual inventory system. Calculate the cost of ending inventory using FIFO costing. (2 marks) i) Assume Warner Corporation uses a periodic inventory system. Calculate the cost of goods sold using weighted-average cost. (3 marks) b) Prepare jourmal entries as of May 31, 2017 to record transactions for the Summer Corporation assuming a perpetual inventory system. (13 marks) May 6 Purchased $6,500 of merchandise from Kuntz Industries, terms 3/15, net 30 May 11 Sold $3,200 of merchandise on account, FOB shipping point, to the Sunshine Company May 12 Returned $1,200 of the merchandise purchased on May 6 as it was defective. May 15 Purchased $1,000 of office supplies on account from Staples. May 20 Paid the outstanding balance from the May 6 purchase. May 28 Received payment in full from the May 11 sale. (the end user of the goods). Cost of the goods was $1,800