The balance sheet of the company A as at 01.05.200x ASSETS Materials (50 units at 6 per unit) Goods for resale (100 units at 10 per unit) Other assets Total assets EQUITY & LIABILITIES Share capital 300 1 000 1 700 3 000 3 000 Total equity & liabilities 3 000 Business events in May 200X 1. Acquired 100 units of materials: - purchase price of 6 per unit -transport costs 10% of the purchase price 50 units of goods and resale - purchase price 9 per unit transport costs 200 2. 90 units of materials were used in the production process (cost of used materials is recognized in work in progress) 70 units of goods for resale were sold at 30 per unit. It was stated that 30 units of materials are necessary and they will be sold in the following year at 4 per unit. 3. 4. 5. The entity designated 40 units of goods for resale to a promotion sale at 8 per unit (net selling price) Required Prepare the income statement for May 200X and the closing balance sheet at the end of May, taking into consideration the following information all transactions were conducted without cash payment, materials and goods for resale are recognized at the cost of purchase outflow of materials and goods for resale from the warehouse is calculated according to FIFO method