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9. RedRose Ltd. is a retailer selling home furnishings. One of the company's products is a flower vase that it purchases from several suppliers and
9. RedRose Ltd. is a retailer selling home furnishings. One of the company's products is a flower vase that it purchases from several suppliers and resells to its customers. The following information relates to the purchases and sales of flower vase during October 2019 (purchases occur at the start of the week before any sales are made): Week 1: Bought 15 at 10 each. Sold 10 at 20 each. Week 2: Bought 15 at 12 each. Sold 15 at 20 each. Week 3: Bought 20 at 13 each. Week 4: Sold 18 at 25 each. i. Calculate COGS and Ending Inventory under FIFO and LIFE. (5 marks for each method) ii. What would be the total profit under each method and which method will provide the highest profit? (5 marks for each method and 5 marks for providing the method which provides the highest profit)
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