QUESTION TWO

$(9$ marks$)$

Part A

Sam's mobile phones Ltd records its inventory of android phones by using a perpetual inventory system on a FIFO basis. The following details are supplied for one popular make and model for the month of November. Ignore GST$.$

Nov. $1$

Inventory on hand consisted of $20$ android phones costed at $$1600$ each.

Purchases:

Nov. $210$ phones at $$1500$ each

Nov. $2020$ phones at $$1650$ each

Nov. $2530$ phones at $$1580$ each

Sales:

Nov. $416$ phones at $$2900$ each

Nov. $2222$ phones at $$2900$ each

Nov. $2920$ phones at $$3100$ each

Required

A$.$ Prepare an inventory record showing the above transactions to calculate the cost of sales and ending inventory balance for the month of November

B$.$ Assuming instead that the company uses the moving average method of recording cost of sales, calculate the cost of sales and ending inventory balance for the month of November.