P 13.16 Inventory cost flow methods - periodic inventory system The following information relates to the inventory of 'The Teapot Shop Ltd', a retail business that sells a variety of flavoured teas and accessories. A summary of the transactions for dried tea are presented below for the month of June. Ignore GST. The Teapot Shop Ltd has adopted the periodic inventory system for recording inventory. Sales totalled 3565 units of tea at a sales value of \$21 390. A physical stocktake at the end of June confirmed 800 units of tea were on hand. Note, round to the nearest dollar. Required (a) Prepare a Statement of Profit or Loss to calculate the gross profit for the month of June using each of the following costing methods: i. specific identification, assuming that 950 units were sold from the beginning inventory, 650 units were sold from the first purchase, 500 units were sold from the 13 June purchase, 740 units were sold from the purchase on the 25 June and the remainder from the 30 June purchase. ii. FIFO iii. LIFO iv. weighted average. (b) Which cost flow method(s) resulted in the highest gross profit on sales? the highest ending inventory? Explain your results