(b) Which costing method produces the highest cost allocation to ending inventory?
On 1 September, Better Office Supplies had an inventory of 30 deluxe pocket calculators at a cost of $20 each. The business uses a perpetual inventory system and FIFO inventory cost flow method. During September, the following transactions occurred: Sept. 6 Purchased 80 calculators at $22 each from Digital Ltd for cash. 9 Paid freight of $88 to We Deliver on calculators purchased from Digital Ltd. 10 Returned two calculators to Digital Ltd for $44 credit because they did not meet specifications. 12 Sold 26 calculators for $33 each to Reader Book Store, terms n/30. 14 Grant credit of $33 to Reader Book Store for the return of one calculator that was not ordered. 20 Sold 30 calculators for $33 each to Mega Ltd, terms n/30. Required Journalise the September transactions, assuming all businesses were registered for GST and the GST rate was 10%.