The following information has been extracted from the records of Aussie School Supplies Ltd about one of its popular products, a set of coloured scented textas. Aussie School Supplies Ltd uses the perpetual inventory system. Its annual reporting date is 31 December. Ignore GST.

Required

(a) Calculate the cost of inventory on hand at 31 December 2024 and the cost of sales for the year ended 31 December 2024, assuming:
i. the FIFO cost flow assumption ii. the moving average cost flow assumption (round average unit costs to the nearest cent, and total cost amounts to the nearest dollar).

(b) Prepare the Statement of Profit or Loss to gross profit for the year ended 31 December 2024, assuming:
i. the FIFO cost flow assumption ii. the moving average cost flow assumption

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No. of units Unit cost 2024 Jan. 1 Jan. 6 Feb. 5 Mar. 17 Apr. 24 May-04 Beginning balance Purchases Sales @ $12 per unit Purchases Purchases returns Sales @ $12.10 per unit 900 $ 7.00 400 7.05 1 000 1 100 7.35 80 7.35 700 Jun. 26 Purchases 8 400 7.50 Aug. 11 Sales @ $13.25 per unit 1 800 Aug. 19 Sales returns @ $13.25 per unit 20 Sept. 11 Sales @ $13.50 per unit 3 500 Oct. 6 Purchases 500 8.00 Dec. 11 Sales @ $15 per unit 3 100