HW$2$ Which is Better Ltd$.$ is trading with internal doors, the CEO asked the accountant to

show the difference between using FIFO and Average cost method.

During the first quarter of $20$X$1$ Which is Better Ltd$.$ has the following information on the

changes in inventories.

Calculate the gross profit and the amount of closing inventory at the end of each

month and at the end of the quarter if the company uses

a$.$ FIFO

b$.$ Average cost

method to calculate COGS.

Compare the results of $a.$ and b$.$ and explain the differences $($in Income statement

and in Statement of Financial Position$)$

$1.$a$)$ FIFO method

$1.$b$)$ Average cost method