During last month, P&G Inc. made the following sales and purchases of pencil erasers.

July 01 Purchase 400 items @ $10.00 each

July 08 Purchase 600 items @ $7.00 each

July 19 Sold 500 items Sales Price $12 per unit.

July 26 Sold 200 items Sales Price $14 per unit.

July 29 Purchase 600 items @ $6.00 Each

July 31 500 items Sales Price $16 per unit

A. From the information given above calculate the closing stock using the method for:

i. FIFO (7 marks)

ii. AVCO (7 marks)

B. Prepare the Trading Account for the period using FIFO and AVCO, clearly showing the Cost of Sales and the Gross Profit.