QUESTION 5 (15 marks): Part A: Iqaluit Corporation uses FIFO and a periodic inventory system. You have been provided with the following information relating to the company's inventory for the year ended December 2021: Beginning inventory Jan 1 $24,000 Ending inventory Dec 31 15.000 Total purchases recorded during 2021 135,000 Total purchase returns and allowances 4,000 Required: Record the journal entry (entries) that are required to bring Iqaluit's inventory accounts and cost of goods sold up to date for 2021. Part B: Aug 1 During August, the following changes in inventory item #488 took place: Balance 1,000 units @ $10 14 Purchased 1,800 units @ $12 24 Purchased 500 units @ $15 15 Sold 1,100 units @ $50 (selling price) 29 Sold 1,000 units @ $52 (selling price) Perpetual inventories are maintained. Required: For the month of August: 1. Determine the cost of the ending inventory for item #488 under the weighted-average method? (Show calculations.) (Be sure to know the date of each transaction.) 2. Determine the cost of goods sold for item # 488 under the weighted average method? (Show calculations.) 3. If you were the Chief Executive Officer of this company, and you received a bonus based on the net income of the company, which method of inventory valuation would you prefer? Or would you not care at all? Explain briefly