EXERCISE 1 FIFO, LIFO and average cost method in periodic inventory system Angelo Pic uses a periodic inventory system. The beginning balance of inventory and purchases made by the company during the month of July, 2016 are given below: July 1: Beginning inventory, 500 units @ $20 per unit. July 18: Inventory purchased, 800 units @ $24 per unit. July 25: Inventory purchased, 700 units @ $26 per unit. The company sold 1,400 units during the month of July. Required: Compute inventory on July 31, 2016 and cost of goods sold for the month of July using following inventory costing methods: a. LIFO b. FIFO c. Average cost (25 marks)EXERCISE 2 Bank Reconciliation On November 30, Brown Sugar Plc has the below information related to cheques and cash: 1. The bank balance as per the accounting records of the company amounts to $42,500 and the bank balance as per the bank statement amounts to $37,758. 2. Collected cash of $6,244 on November 30 will be transferred to the Bank on December 1. 3. In the Bank Statement there is a credit of $167 showed as interest earned for November. 4. There are two Outstanding Cheques NO 921 of amount $964 and NO 925 of amount $1,085. 5. In the Bank Statement there is a debit of $14 shown as Bank Service Charges, Non- Sufficient-Funds Cheque of Mr. Sweet with $700. Required: a. Prepare a Bank reconciliation statement on November 30. b. Prepare the necessary journal entries after the preparation of the Bank reconciliation. (25 marks) EXERCISE 3 Cash amounts held Cash is an important asset for a business which should be protected against fraud or theft. Which internal controls can be put in place by a company to protect its cash? (25 marks) EXERCISE 4 Ownership of Inventory Explain the implications relating to ownership when goods are: a. In transit (FOB) Shipping Point b. In transit (FOB) Destination c. On Consignment (25 marks)