Q3. a) Bao Company began its operation on July 1. It uses a periodic inventory system. During July, the company had the following purchases and sales. Physical count shows that 1600 units are in the inventory at the end of the month. Date July 1 Quantity 900 units Unit cost $10.00 July 08 July 13 July 15 July 23 Descriptions Beginning Inventory Purchases Purchases Purchases Purchases 1300 units 1400 units 1900 units 2000 units $11.10 $11.30 $1.90 $12.00 i. Using the FIFO and LIFO method find the ending the inventory and cost of good sold. [10 marks] ii. How perpetual system is different from periodic system in determining cost of good sold? [2 marks] b) At September 2016, the balance in Wordsworth Co's cash book balance was $805.15. A bank statement on 30 September 2006 showed Wordsworth Co to be in credit at the bank by $1,112.30. On investigation of the difference, it was established that: The cash book had been undervalued by $90.00 by mistake. Deposit in transit by the bank on September 30 were $208.20 Cheques drawn not yet presented to the bank were $425.3. i. Prepare a bank reconciliation statement from the above information. [3 marks]