Question 1 (20 Marks) Beta company uses the periodic inventory system. The beginning balance of inventory and subsequent inventory purchases made by the company during the month of July 2019 are given below: July 01: Beginning inventory, 400 units @ $18 per unit. July 18: Inventory purchased, 600 units @ $20 per unit. July 25: Inventory purchased, 800 units @ $25 per unit. . The Beta company sold 1,200 units during the month of July. Required: Compute the cost of goods sold and ending inventory on July 31, 2019 using the following inventory costing methods: 1. First in, first out (FIFO) method (10 marks) 2. Weighted Average cost method (10 marks) Question 2 (20 Marks) On Jan 3, 2017, Limestone Enterprises purchased equipment for $134,500. The equipment has a useful life of five years or of 15,000 working hours and after the useful life it will have a residual value of $12,000. The machine was used for 1,400 hours in 2017, 2,100 hours in 2018; 3,700 hours in 2019. Required: 1. Calculate the depreciation expense for 2017 and 2018 under each of the following methods: (15 marks) i. Straight-line, ii. Double diminishing-balance, and Units-of -production 2. Record the journal entry for depreciation expense for the year ended December 31, 2017 under the straight-line method. (2 marks) 3. Which method results in the lowest profit for the first two years? Why