Question 4 (10 marks)

Mr Peter is using a perpetual inventory system since the information on inventory quantity and availability is updated on a continuous/real-time basis under this system. The business of Mr Peter is comparatively new, and he decided to sell only one type of shirt. Further, Mr Peter uses the FIFO cost flow assumption to manage the inventory. Table 1 below presents the inventory and sales record for Mr Peter for February 20X3.

Table 1. Inventory Record of Mr Peter
Date	Units Purchased	Unit Sold	Selling price per unit ($)
2	1 215 units at $11
7	729 units at $12
11	486 units at $14
19	1 215 units at $13
28	162 units at $15
9		243	15
16		1 458	15
24		567	17

Required: Based on the above information, calculate the following for February 20X3:

Cost of goods sold (COGS) [6 Marks]

ANSWER a):

Cost of closing inventory [2 Marks]

ANSWER b):

The gross profit [2 Marks]

ANSWER c):