Bens Bargain has the following information that relates to the entitys inventory record for the month of April.

April Units Unit cost Total cost

1 Beginning inventory 300 $ 3.00 $ 900

12 Purchases 600 2.80 1 680

24 Purchases 700 2.70 1 890

Bens Bargain uses the periodic inventory system. A physical inventory count on 30 April showed that 600 units were on hand.

Required

(a) Calculate the cost of Aprils ending inventory using the following methods:

i. FIFO

ii. LIFO

iii. Weighted average cost (round to the second decimal place).

(11 marks)

(b) Which method resulted in the highest cost of ending inventory. (2 marks)

(c) Which method resulted in the highest gross profit state the method only; you are not required to perform any calculations. (2 marks)

(d) Discuss your answer to (c). Why did this method result in the highest gross profit? (5 marks)