- 100 A importer and distributor of one type of microwave oven has the following transactions in his records: Date Purchases Sales Units Unit cost Units Unit Selling Price 12 January 20 81 19 January 60 70 31 January 30 82 50 140 9 February 50 85 21 February 30 85 28 February 20 94 140 The opening stock on 1 January was 20 units, which cost 80 each For updating stock records and monthly accounting routines, all issues are priced on the last day of each month The physical stock at the end of January agreed with the book stock record but a similar check at the end of February revealed a deficit of four units assumed stolen Fixed costs of administration, selling and distribution amount to 2,000 per month, variable selling and distribution costs are 10% of sales. The company prepares monthly Profit & Loss Accounts REQUIRED (a) Calculate the month end stock valuations for January and February which would arise from pricing out monthly issues by each of the following methods () FIFO (1) LIFO (H) Weighted average (12 marks) (b) Prepare a Profit & Loss Account for February using the valuations based on the Weighted Average method (8 marks) (Total 20 marks)