START OF EXAM TASK 1 (12 marks) Wentworth Hardware Ltd uses a Periodic Inventory System. The beginning inventory of Product DH0254 and information about purchases and sales made during May are shown below: 1 1 Opening Inventory 2 000 units 4 Purchases 1 500 units $15.00 17.50 9 Sales 2 000 units May a 12 1 800 units Purchases Sales 21 18.00 24 Sales 1 000 units 1 200 units 1 000 units 500 units 26 6) Purchases Purchases 19.00 30 20.00 Selling price of DH0254 is $32 per unit (Ignore GST). Closing inventory on hand at May 31 is 2,600 units. Operating expenses for the month were $42,000 Required: a) Using the FIFO method, calculate the cost of May 31 closing inventory and the cost of sales. (6 marks) b) Prepare an income statement for Wentworth Hardware Ltd for May. (6 marks) TASK 1 a) Wentworth Hardware Ltd FIFO Method (Periodic) Closing inventory Cost of goods sold Page 2 of 9 UOWCA-WUCB104-EXSF TASK 1b) WENTWORTH HARDWARE LTD Income Statement for the month ended 31 May