Question 6 (12 Marks)

Modelmania Ltd (ML)sells model cars. At the beginning of the March, ML had in beginning inventory 90 model cars with a unit cost of $35. During March ML made the following purchases of model cars.

Date	Item	Quantity (units)	Unit Cost
5th Mar.	Purchase	210	$40
13th Mar.	Purchase	330	$45
21st Mar.	Purchase	240	$50
26th Mar.	Purchase	90	$55

During the March, 810 units were sold. Modelmania uses a Periodic Inventory System.

Required:

1. Calculate ending inventory under inventory recording method FIFO (First in First Out).

[5 marks]

[Answer and show workings here]

1. Calculate ending inventory under inventory recording method LIFO (Last in First Out).

[5 marks]

[Answer and show workings here]

1. Which method results in the highest ending inventory? [2 marks]

[Answer here]