Question Two Dr Dr The Kilifi Co. Ltd. had the following transactions in connection with their inventory account during the month of August 2020. Purchases 1 August Goods on hand 650 @ 8.40 3 August 770 @ 8.20 7th August 1,250 @ 8.00 11th August 650 @ 8.50 16th August 500 @ 8.70 23rd August 750 @ 8.60 4,570 Sales 4th August 280 @ 12.60 10th August 350 @ 13.60 12th August 900 @ 13.00 17th August 650 @ 13.00 20th August 860 @ 13.50 25th August 700 @ 13.50 3,740 Required (a) Assuming that the company keeps perpetual records in units only. Complete the inventory as at 31st August using (i) LIFO (ii) Average cost (10 marks) (b) Assuming that perpetual records are kept in dollars, complete the inventory at 31st August using (i) FIFO (ii) LIFO (10 marks) (c) Calculate the cost of goods sold and gross profit the company should record for the month of August assuming FIFO and periodic inventory procedures (5 marks) (Total: 25 marks) Question Two Dr Dr The Kilifi Co. Ltd. had the following transactions in connection with their inventory account during the month of August 2020. Purchases 1 August Goods on hand 650 @ 8.40 3 August 770 @ 8.20 7th August 1,250 @ 8.00 11th August 650 @ 8.50 16th August 500 @ 8.70 23rd August 750 @ 8.60 4,570 Sales 4th August 280 @ 12.60 10th August 350 @ 13.60 12th August 900 @ 13.00 17th August 650 @ 13.00 20th August 860 @ 13.50 25th August 700 @ 13.50 3,740 Required (a) Assuming that the company keeps perpetual records in units only. Complete the inventory as at 31st August using (i) LIFO (ii) Average cost (10 marks) (b) Assuming that perpetual records are kept in dollars, complete the inventory at 31st August using (i) FIFO (ii) LIFO (10 marks) (c) Calculate the cost of goods sold and gross profit the company should record for the month of August assuming FIFO and periodic inventory procedures (5 marks) Total: 25 marks