FIFO and average cost flow methods — periodic and perpetual inventory systems Non-GST version Clean Air Ltd sells air purifiers. The table below summarises the inventory movements for the most popular model of air purifier sold in the domestic market. (Ignore GST)

Required

(a) Using the weighted average costing method for periodic inventory, calculate the cost of sales and closing value of inventory to be presented in the financial reports for the year ended 30 June 2024.

(b) Using the moving average method costing inventory under perpetual inventory, calculate the cost of sales and closing value of inventory to be presented in the financial reports for the year ended 30 June 2024.

(c) Using a periodic system and the FIFO method of valuing inventory, calculate the cost of sales and closing inventory to be presented in the financial reports for the year ended 30 June 2024.

(d) Using a perpetual system and the FIFO method of valuing inventory, calculate the cost of sales and closing inventory to be presented in the financial reports for the year ended 30 June 2024.

(e) Compare and contrast the results generated for the inventory valuation methods for the requirements completed in (a), (b),

(c) and

(d) above. Discuss the differences between each method.

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July 1 Beginning Inventory 55 @ $250 = $ 13 750 Aug. 15 Sales 40 Sept. 2 Purchases 90 @ $255 = 22 950 Nov. 10 Sales 35 Dec. 19 Sales 25 Feb. 21 Purchases 85 @ $257 = 21 845 Mar. 28 Sales 42 May 31 Sales 55