Inventory

a) Natasha Burke provides you with the following information in respect of one of her inventory items:

1 March	Balance	55 units @ $40.00 unit
8 March	Sold	35 units @ $90.00 unit
15 March	Purchased	60 units @ $45.00 unit
22 March	Sold	55 units @ $95.00 unit
29 March	Purchased	40 units @ $50.00 unit
31 March	Stocktake	60 units on hand

Tasks

i. Prepare inventory ledger cards for the inventory item using both the FIFO and weighted average methods. Round unit costs to the nearest cent.

ii. Show balances for the cost of goods sold, sales and gross profit under both the FIFO and weighted average methods.

b) Explain why Natasha Burke may use both a perpetual inventory system and a periodic system in her gift store.