Question 2 Part A The following data are available for the ending inventory of Temperature Ltd as at June 30, 2020: Stock code Quantity Unit Cost ($) Selling Price per unit (5) $ 20 $ 60 TCP SES 4,000 2,500 $ 18 $ 63 (i) What should be the reported value of total ending inventory as at June 30, 2020? Show all your workings clearly. (4 marks) (ii) Prepare the journal entries to record the write-off of inventory value. Include narrations and show all your workings clearly. (4 marks) Part B The following information relates to the inventory of badminton racquets in the records of Homestay Ltd for the month of May 2020: 20 units @ $150 12 units @ $350 May 1st 5th 8th 20th 25th 30th Beginning inventory Sold Purchased Sold Purchased Sold 28 units @ $160 12 units @ $350 12 units @ $210 20 units @ $350 Homestay Ltd uses the perpetual inventory system. Required: Determine the cost of ending inventory using the following two methods: (1) (4 marks) First-In-First-Out (FIFO) method Last-In-First-OUT (LIFO)method (5 marks) Show all your workings clearly. Part C The following information relates to Ladies' Fashion Ltd. 2020 Ratio 2019 Average days in inventory 95 days 105 days Required: Interpret the above ratio of Ladies' Fashion Ltd. (3 marks) (Total = [4 + 4] + [4 + 5] + 3 = 20 marks)