Reference no: EM132686274

Question - The following information relates to the inventory of Margaret's Megamart Ltd during December. Ignore GST.

Date Units Units cost Total cost

1/12 Beginning inventory 700 $ 12.00 $ 8,400

10/12 Purchase 500 12.60 6,300

15/12 Purchase 300 13.20 3,960

23/12 Purchase 500 14.00 7,000

Totals 2,000 $25,660

Margaret's Megamart Ltd uses the periodic inventory system. A physical count on 31 December verified that 650 units were on hand.

Required -

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

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

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