Perpetual inventory system with returns LO3, 6 During the year ended 30 June 2019, Laing Ltd sold each unit of its goods at $9. Purchases and sales of the goods are shown below. Ignore GST. 2018 July 1 Inventory on hand 210 units @ $5.00 each 30 Sales 125 units Aug. 25 Purchases 320 @ $5.25 30 Sales 260 units Sept. 3 Purchases 450 units @ $5.30 10 Purchases returns 50 damaged units from 3 September purchase 30 Sales 300 units Oct. 5 Purchases 300 units @ $5.40 Dec. 8 Purchases 250 units at $5.45 11 Sales 500 units 2019 Feb. 21 Purchases 150 units @ $5.50 March 18 Purchases 100 units at $5.60 April 30 Sales 300 units 620 Financial accounting 2019 May 2 Sales returns 30 units from 30 April sales, goods returned to inventory 4 Purchases 250 units @ $5.70 June 6 Purchases 300 units @ $5.85 30 Sales 460 units Laing Ltd uses a perpetual inventory system.

Required:

(a) Using dollars and cents inappropriate inventory records, determine the cost of the inventory on 30 June 2019 under the following inventory cost flow assumptions: 

i. FIFO 

ii. moving average (round to the nearest cent).

(b) Assuming that a physical count on 30 June 2019 determined that only 325 units remained in inventory, prepare the journal entry to record the fact that some units had gone missing.

(c) Using the moving average method, prepare the Inventory Control, Cost of Sales, and Sales accounts (T‐account format), assuming that these accounts are balanced yearly on 30 June. Assume as well that the physical count of inventory was as mentioned in requirement (b) above.