could have caused this discrepancy? that is $450 less than what was estimated in part (a). Rol Some of the information found on a detailed inventory card for Soave Stationery Ltd. for May is 700 600 500 300 1,100 800 3.60 Date Received Issued Balance No. of Units May 1 (opening balance) Unit Cost No. of Units No. of Units 2 1,150 $2.90 1,150 7 1.050 3.00 2.200 10 1,500 13 3.20 2.100 18 1,600 1,000 20 3.30 2,300 23 1,200 1,300 3.40 2.500 26 28 1,700 1,500 3,200 31 1,300 1,900 Instructions a. From the above data, calculate the ending inventory based on each of the following cost formulas. Assume that perpetual inventory records are kept in units only and average cost is calculated monthly at each month end. Calculate unit costs to the nearest cent and ending inventory to the nearest dollar. 1. First-in, first-out (FIFO) 2. Weighted average cost b. Based on your results in part (a), and assuming that the average selling price per unit during May was $7.25, prepare partial income statements up to the "gross profit on sales" line. Calculate the gross profit percentage under each inventory cost formula. Round your answers to one decimal place. Comment on your results. c. Digging Deeper Assume the perpetual inventory record is kept in dollars, and costs are calculated at the time of each withdrawal. Recalculate the amounts under this revised assumption, rounding average unit costs to four decimal places. Would the ending inventory amounts under each of the two cost formulas above be the same? Explain. *8.16 Excel Hull Company's record of transactions concerning part X for the month of April was as llows. Purchases Sales