QUESTION 1 The following information has been extracted from the records of Steven's Stationery about one of its popular products. Steven's Stationery uses the perpetual inventory system. Ignore GST. No. of units Unit cost 2020 Jan. $7.00 $7.05 Feb. 57.35 700 1 Beginning balance 900 6 Purchases 400 14 Sales @$12 per unit 1 000 Mar. 18 Purchases 1 020 May 21 Sales @S12.10 per unit June 24 Purchases 8 400 Aug. 27 Sales @ $13.25 per unit 1780 Sept. 30 Salos @$13.50 per unit 3 500 Oct. 6 Purchases Dec. 11 Sales @S15.00 per unit 3100 $7.50 500 58.00 Required: (a) Calculate the cost of inventory on hand at 31 December 2020 and the cost of sales for the year ended 31 December 2020, assuming: the FIFO cost flow assumption ii. the moving average cost flow assumption (round average unit costs to the nearest cent, and total cost amounts to the nearest dollar). (b) Prepare a comparative income statement to gross profit for the year ended 31 December 2020, assuming: i. the FIFO cost flow assumption ii. the moving average cost flow assumption (a) i. FIFO Cost assumption: perpetual Product FIFO Method Purchases Malar Date Particular wwe Tutal cost air cent Total Tua TOTAL ii. Moving average method: Perpetual. Purchases Sales Date Particulars Unit Unit Total Units Unit cost Balan Total i La Total CON TOTAL (b)i&ii Steven's Stationery Income Statement Period ending 31 December 2020 FIFO Mening Average Sales Less Cost of sales GROSS PROFIT