Question 5 [12 marks! Please note that Part A, Part B and Part C are not related. Part A (2.5 marks) ABC Ltd reports the following for the month of June: Date Explanation Units Unit cost June 1 Inventory (Beginning) 500 $21 11 Purchase 1500 $25 20 Purchase 800 $23 Inventory (Ending) ABC Ltd uses a periodic inventory system. Ignore GST. Required: Calculate cost of ending inventory and the cost of sales using both FIFO and average cost methods. Question 6 [5 marks) XYZ Ltd reported the following nancial data over a three-year period. 2016 201 7 2018 Income $453 100 $460 200 $500 600 Gross prot 290 200 292 800 320 800 Other expenses 150 000 190 400 160 200 Required: 1) Prepare a horizontal analysis of the data using 2016 as the base year. (3 Marks) 2) Discuss whether the trends signify a favourable or unfavourable situation. (2 Marks) Part B 15 marks! Abacus Ltd buys and sells sport shoes. The information relating to the purchases and the inventories for Abacus Ltd for the month of May 2019 is given as follows: Date Detail Units Cost per unit I -May Inventory 2, 5 00 $ 6 0 8May Purchase 4, I 00 $ 62 20-May Purchase 2, 800 $65 3 I-May Inventory 2,200 _ Required: Ignore GST. Determine the cost of ending inventory and cost of sales for the month of May based on the periodic inventory system, under the following cost ow assumptions: a) LIFO b) Average cost