Question $2($Total $20$ marks$)$

Goodluck Company reported the following May purchases and sales data for its only product.

$\backslash$table$[[$Date$,$Activities,Units acquired at cost$,\backslash$table$[[$Units Sold at$],[$Retail$]]],[$May $1,\backslash$table$[[$Beginning$],[$Inventory$]],200$ units @ $$8=$ $$1600,],[$May $8,$Sales,,$100$ units @ $18],[$May $18,$Purchases,$300$ units @ $$10=3000,150$ units @ $18],[$May $23,$Sales,,$],[$May $31,$Purchases,$100$ units @ $$7=,700,]]$

Goodluck uses a perpetual system.

Required:

Under a perpetual inventory system, determine the cost assigned to ending inventory and cost of goods sold under $($a$)$ weighted average cost method and $($b$)$ FIFO method. $($For weighted average cost method, round to two decimal places for average cost per unit and round to the nearest dollar for all other answers.$)$

Please show your calculations in a table as follows for both $1.($a$)$ and $1.($b$)$:

$\backslash$table$[[$Date$,$Goods Purchased,Cost of Goods Sold,Inventory Balance$],[,,,],[,,,],[$Total$,,,]]$

$(12$ marks$)$

$2.$ Calculate the goods available for sale and total sales. Show your calculation process. $(4$ marks$)$

$3.$ If costs of inventory are decreasing, compared weighted average to FIFO method, which method of inventory valuation yield the lower cost of goods sold and explain the reason.

$(4$ marks$)$