The following information relates to the inventory of Scarf Ltd during the month of October 2019. Ignore GST.

		Units	Units cost ($)	Total cost ($)
1 Oct	Beginning inventory	2,100	11	23,100
10 Oct	Purchase	1,500	11.6	17,400
15 Oct	Purchase	900	12.2	10,980
23 Oct	Purchase	1,500	13	19,500
	Totals	6,000		$70,980

Scarf Ltd uses the Periodic Inventory System. A physical count on 31 October verified that 1900 units were on hand.

Required:

1. Determine the Ending inventory and Cost of Sales for the month of October, using the FIFO costing method. (3 marks)
2. Discuss the differences between Perpetual and Periodic Inventory systems. (3 marks)
3. Would you recommend the Perpetual Inventory System to the management of Scarf Ltd? Explain. (2 marks)