QUESTION 3 (13 marks) Part I (8 marks) Jason Company uses a perpetual inventory system and reported the following transactions involving inventory during the month of December 2018: December 1 Beginning inventory 4 Purchases 13 Sales 21 Purchases 26 Sales 30 Purchases 100 units 200 units 150 units 300 units 375 units 400 units @ $8.00 @ $8.25 @ $11.20 @ $8.50 @ $11.20 @ $8.75 Required: (Show all workings and rounded amounts to one decimal place of a dollar) a. Calculate the cost of Goods Sold and Ending Inventory as of December 31, 2018 using First-In-First-Out (FIFO) method. (4 marks) b. Calculate the Cost of Goods Sold and Ending Inventory as of December 31, 2018 using Weighted Average Cost method. (4 marks) Part II (5 marks) Financial analysts and investors are very interested in how quickly a company is turning over its inventory as quick turnover yields higher profits. There are events that may have an effect on the inventory turnover ratio. Required: For each of the following two events, indicate and explain whether inventory turnover would increase, decrease or not be affected. a. Change from Weighted Average Cost method to First-In, First-Out method during an inflationary environment. (3 marks) b. Cut sales prices in order to increase sale. (2 marks)