QUESTION 1 Part A The following information has been extracted from the records of Pellegrini P/L about one of its popular products. Pellegrini uses the perpetual inventory system. Its annual reporting date is 30 June. Ignore GST No. of units Unit cost 2018 Feb. 1 1 200 $9.20 9.25 18 March 5 Beginning balance Purchases Sales @ $12.50 per unit Purchases Purchases returns Sales @ $12.10 per unit Purchases 800 1 000 1300 200 March 17 9.28 April 4 9.28 May 24 1 200 June 30 2 800 9.32 Required: Using a perpetual system and the moving average method, (round average unit costs to the nearest cent, and total cost amounts to the nearest dollar). Record the inventory transactions on the stock card provided. Calculate the cost of the year-end inventory and the cost of sales. Purchases Sales Balance Date Particulars Units Total Units Units Total Unit cost Unit cost Total cost Unit cost cost cost 3 10 Purchased 12 QUESTION 1 Part B The following information relates to the inventory of Bryce Ltd during June: June 1 Beginning Inventory 1 200 units @ $7.50 Purchased 2 500 units @ $8.20 1 300 units @ $9.80 Sold 1 500 units 17 Sold 1750 units 25 Sold 1 250 units Bryce Ltd uses a periodic inventory system. Ignore GST. During the month 4 500 units were sold for $58 965 plus GST. A physical count of inventory on June 30 confirmed that 500 units were on hand. Required: Prepare an income statement down to Gross Profit for June, using each of the following costing methods: a) Specific identification method assuming that 900 units were sold from beginning inventory, 2300 units were sold from the first purchase and the remainder from the 10 June purchase b) FIFO method. c) Income Statement a) Specific identification Ending inventory: Cost of sales b) FIFO Units Goods available Ending inventory @ Cost of sales Bryce Ltd. Income Statement Period ending 30 June 20xx Specific Identification FIFO