• P6-3A Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost of £8 per unit. During the year, purchases were: Feb. 20 300 units at £9 Aug. 12 600 units at £11 May 5 500 units at £10 Dec. 8 200 units at £12 Milo Company uses a periodic inventory system. Sales totaled 1,500 units. Instructions (a) Determine the cost of goods available for sale. (b) Determine (1) the ending inventory and (2) the cost of goods sold under the two assumed cost fl ow methods (FIFO and average-cost). Prove the accuracy of the cost of goods sold under the FIFO and average-cost methods. (c) Which cost fl ow method results in (1) the lower inventory amount for the statement of fi nancial position, and (2) the lower cost of goods sold for the income statement?