Part III. Applications (20 MARKS) Direction: Answer the following questions. For each answer you MUST show your work. 1. Using the following information Sales $200,000 Beginning inventory 30,000 Net purchases 10,000 Ending inventory Operating expenses 5% of beginning inventory 10,000 Find Total cost of goods available for sale, Gross profit, and Net income. (9 marks) Marking Scheme: Correct computation& final answer=3arks each 2. The Gucci trading company discloses the following information for the month of August 2021. Beginning Inventory: Purchases: Sales: Aug 1 20 units @$2 $40 Aug 8 30 units @ $3 90 Aug 2 40 units @ $4 160 Aug 12 30 units Aug 25 40 units Instructions: Under a periodic inventory system, compute the cost of good sold & ending inventory cost at Aug 31 under FIFO & LIFO (Marking Scheme (FIFO): 1 Mark for each step x 6 6 marks) (Marking Scheme (LIFO): 1 Mark for each step x 5-5 marks)