Question 1: Aga Khan Company uses a perpetual inventory system. It entered into the following calendar- year purchases and sales transactions. Aug. 21 Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory... 600 units @ $45.00 per unit Feb. 10 Purchase...... 400 units @ $42.00 per unit Mar. 13 Purchase 200 units @ $27.00 per unit Mar. 15 Sales.. 800 units @ $75.00 per unit Purchase 100 units @ $50.00 per unit Sep. 5 Purchase 500 units o $46.00 per unit Sep. 10 Sales 600 units @ $75.00 per unit Totals 1,800 units 1,400 units Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. You must follow the format used in the class to solve the problems. [6 Marks] Question 2: Ronson & Ronson has the following current year purchases and sales for its only product. Date Units Sold at Retail Units Acquired at Cost 40 units @ $2 = $ 80 30 units @ $8 70 units @ $3 = $210 Jan. 1 Jan. 3 Feb. 14 Feb. 15 June 30 Nov. 6 Nov. 19 Activities Beginning inventory.......... Sales...... Purchase. Sales... Purchase. Sales... Purchase. Totals 60 units @ $8 90 units @ $4 = $360 86 units a $8 20 units a $5 = $100 220 units $750 176 units The company uses a periodic inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO method. Also calculate the gross margin for each method. [4 Marks)