Question 2: (20 marks) BB Co. has the following transactions during May, 2011, its first month of operation. May 1 Purchased 1000 units @ $25.00 each May 9 Sold 800 units @ $38.00 each May 15 Purchased 500 units @ $26 each May 27 Sold 600 units @ $37.00 each Required: (i) Calculate total sales, ending inventory, cost of goods sold and gross profit using each of the following inventory methods: (18 marks) a. FIFO Perpetual b. FIFO Periodic c. Weighted Average Cost Periodic (round to 2 decimal places) (ii) Assuming the purchase cost of inventory would increase substantially next month due to shortage in material supply, what would be the impact on net profit if BB Co. continues to use FIFO method, instead of weighted average cost method? Explain (2 marks)