Part 5-Select 2 of the 3 Questions. (20 marks) 1. Inventory Flow Question Units Cost Total Opening Inventory 5,000 50 250,000 Purchased during the year 6,000 60 360,000 Available for sale 11,000 610,000 Sales Price Sales during the year 5,000 100 500,000 Question Calculate the cost of goods sold and ending inventory under the first in first out (FIFO, last in first out (LIFO) and average costing methods. Which method has the best gross margin and why? (10 marks) 2. Depreciation Alternatives Cost Salvage Useful Life Operating Profits before depreciation Production units 200,000 20,000 3 years Year 1 300,000 Year 2 Year 3 150,000 50,000 Total 500,000 60,000 50% 30,000 10,000 100,000 30% 20% 100% Engineering Estimated deterioration of the machine Question - Calculate depreciation under the straight line, accelerated and units of production methods for each year. Which method has the best impact on Operating Profits, trends, and reporting over the three years and why? (10 marks) 3. Earnings per Share and Returns Price Earnings Multiple all years estimate 15