entory cost Question 2 Following is the inventory information provided for Zach Auto Supplies. The manager of Zach Auto Supplies has asked the newly hired bookkeeper to calculate inventory costing using FIFO. The work done by the bookkeeper has been provided below. Upon reviewing the work, was realed that cost of goods sold and ending Inventory was not calculated by the bookkeeper. Inventory sale and purchase information from company los Company Zach Auto Supplies Month Toate Opening/Sale/Purchase units cost per unit Price per unit 4005 55.00 Opening 78715 Dec 6 Purchased 66.06 872 IS 112.26 12 Sold 16 Purchased 66.81 10071 1146 $ 122.26 30 sold Work done by the bookkeeper Purchases Cost of Goods Sold Inventory Balance Units Date Cost Units Cost Total Cost Total Total Units Dec 400 55.00 22.000 1 400 55.00 22.000 6 787 66.06 51.989 787 06.06 51.989 400 55 22,000 12 366.06 472 66 31,180 20,309 315 66.06 20,309 16 1.007 66.81 67 278 400.00 22.000 400 55.00 22.000 9 787 66.06 51,989 787 66.00 51.989 400 55 22,000 472 66 31,180 90 99 ISTE 20.803 315 66.00 20,809 16 1.007 18499 67,278 1.007 66.81 67,278 315 66.00 20,809 30 331 11,799 66.81 55,522 170 66.31 Total Required: a) From the inventory costing schedule shown above calculate the total cost of goods sold for the month of December 20x1 as well as the ending inventory Cost of Goods Sold 2 Marks Ending Inventory 1 Mark b) Calculate the sales Revenue, Gross Profit and Gross Margin. Round your calculation to two decimal places. Sales Revenue = 2 Marks 2 Marks Gross Profit Gross Margin Percentage 2 Marks 40 c) Zach Auto Supplies' manager's bonus is tied to the gross profit. If prices are rising which costing formula (FIFO or Weighted Average cost) will the manager want to use and why? 2 Marks 30 52