QUESTION 4 (15 MARKS, 30 MINUTES) Kids Got Style Inc. (KGS Inc.) specializes in selling clothing for children and uses a perpetual inventory system. KGS Inc. had the following activity for one of their t-shirts which was a part of their summer collection for the month of June 2020: Units Unit Cost Total Cost June 1, inventory 500 $2.50 $1,250 Purchases: June 5 250 3.50 875 June 10 175 4.50 787.50 June 15 100 5.50 550 Sales: June 11 550 June 19 375 Required: a) Using the perpetual system, determine the total cost of goods sold and ending inventory for the month of June under: i) FIFO ii) Weighted average (round per unit cost to two decimal places) Please show all your calculations. b) It is now December 2020 and KGS Inc. has 20 t-shirts remaining from their summer collection mentioned above. This specific t-shirt regularly retails at $10 per shirt, however based on market demands KGS Inc. reduces the price by 50%, which brings the selling price down to $5. Assuming KGS Inc. uses the FIFO method for determining total cost of goods sold and ending inventory, show the journal entry, if any, that would be required to adjust the financial statements at the December 31, 2020 year-end in order to account for the decline in selling price