The following information relates to the inventory of Margaret’s Megamart Ltd during December. Ignore GST. Date Units Units cost Total cost 1/12 Beginning inventory 700 $ 12.00 $ 8,400 10/12 Purchase...

The following information relates to the inventory of Margaret’s Megamart Ltd during December. Ignore GST.

Margaret’s Megamart Ltd uses the
periodic inventory system. A physical count on 31 December verified that 650 units were on hand.

Required:

1. Determine the Ending inventory and Cost of Sales for the month of December, using the FIFO costing method.


2. Determine the Ending inventory and Cost of Sales for the month of December, using the weighted average costing method.


3. Which cost flow method(s) resulted in higher gross profit on sales? a higher ending inventory? Explain your results.