The following information relates to the inventory of Margarets Megamart Ltd during December. Ignore GST.

Margarets Megamart Ltd uses the periodic inventory system. A physical count

verified that 650 units were on hand.

Required:

1. a) Determine the Ending inventory and Cost of Sales for the month of December, using the FIFO costing method. (3 marks)

2. b) Determine the Ending inventory and Cost of Sales for the month of December, using the weighted average costing method. (3 marks)

3. c) Which cost flow method(s) resulted in higher gross profit on sales? a higher ending inventory? Explain your results. (2 marks)

Units 700 500 Date 1/12 Beginning inventory 10/12 Purchase 15/12 Purchase 23/12 Purchase Totals Units cost $ 12.00 12.60 13.20 14.00 Total cost $ 8,400 6,300 3,960 7,000 $25,660 300 500 2,000