Question2 Shepard Company sold 4,000 units of its product during the year and incurred operating and made successive purchases of its product as follows. (16 marks) Required: 1. Calculate cost of goods sold and cost of ending inventory for the two inventory costing methods of FIFO and UFO (Round all amounts to cents.) The company uses a periodic inventory system. Marking Scheme (FIFO): 1 Mark for each step 4=4 marks Marking Scheme (UFO): 1 Mark for each step 4=4 marks 2. What advantages and disadvantages are offered by using (a) LIFO and (b) FIFO? Assume the continuing trend of increasing costs. (8 marks) Marking Scheme: Advantages/disadvantages of Fifo: 1 mark each 4=4 marks Marking Scheme: Advantages/ disadvantages of tiFo: 1 mark each 4=4 marks