Question 4 (10 marks) (Record your answers directly below the question.

Big Boy Company began September, 2020 with 40 units (of inventory X) that cost $24 each. During the month, Big Boy made the following purchases of inventory item X at cost:

Sept 3 100 units @ $30

Sept 18 200 units @ $25

Sept 23 60 units @ $33

Big Boy sold 300 units (280 units on Sept 22 and 20 units on Sept 30), and at September 30 the ending inventory consists of 100 units. The sale price of each unit was $70.

Required:

1. Determine the cost of goods sold and ending inventory amounts under:

(a) weighted-average cost under the periodic system and

(b) FIFO cost assuming the periodic system is used. Round weighted-average cost per unit to two decimal places, and round all other amounts to the nearest dollar.

2. Prepare 's income statement in good form for Sept, 2020 . Report gross profit. Operating expenses totalled $2,700. The company uses FIFO costing for inventory. The income tax rate is 20%.