Instructions Notes IV 5 Paragraph Question 2 Assume the following data for Oaks Dairy for the month of June 20x5: Total cost $70 120 Date Description 1 June 20X5 Beginning balance 5 June 20x5 Purchase 8 June 20X5 Sales @S.P. =$18 10 June 20x5 Purchase 15 June 20x5 Sales @ S.P. $18 30 June 20x5 Purchase Units /unit cost 10 units @$7 15 units@$8 13 units 20 units @$8.50 14 12 units @ $9 170 108 S.P. Selling price Required: Round up answers to the nearest cent. 1. If Oaks Dairy uses a periodic inventory system, for each of (i) Average cost and () FIFO methods, calculate: a. the ending inventory cost. b. cost of sales (COS) and c. Gross Profit (GP) Answer to Requirement 1 2. If the net realisable value of ending inventory is $250, how will it change your calculations for each of the cost methods in Requirement (1). If no change indicate no change. If there is a change for the method, recalculate: a. the ending inventory cost, b. cost of sales (COS) and c. Gross Profit (GP)