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The commonly used inventory costing methods include First-In-First-Out (FIFO), Last-In-First-Out (LIFO) and Weighted Average Cost...

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The commonly used inventory costing methods include First-In-First-Out (FIFO), Last-In-First-Out (LIFO) and Weighted Average Cost (WAC). Which of these methods will result in the lowest profit during a period of increasing prices? (2 marks) Desmond commenced his business selling toys in the year 2021. The transactions for May 2021 were provided below: Desmond uses the Periodic FIFO inventory costing method. Required: (a) Compute the closing inventory as at 31 May 2021 . (6 marks) (b) Compute the cost of goods sold as at 31 May 2021 . (2 marks) (c) For inventory that is damaged or obsolete, state the stock valuation rule that Desmond has to adopt. (1 mark)

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