One Stop Limited (OSL) uses the perpetual inventory system and the weighted average costing method. Below is OSLs record of inventory purchases and sales for the month of October 20X1.

Required:

1. Calculate the sales revenue, cost of goods sold, and gross profit of OSL for October 20X1.

2. Calculate the ending inventory of October 20X1 if OSL used the FIFO costing method instead.

3. Discuss whether and briefly explain why the cost of goods sold and ending inventory of October 20X1 would be higher or lower if OSL used the LIFO costing method instead.

Date Description Units Unit cost ($) Unit sale price ($) 1 Oct Beginning inventory 130 50 5 Oct Purchases 104 59 9 Oct Sales 110 85 12 Oct Sales 64 90 16 Oct Purchases 140 64 25 Oct Sales 85 80 30 Oct Sales 80 95