3b

3 (a). The method gives a better matching of Revenue and Expense. 4. The Net Realizable value of Video Special's inventory (stock) at 31 May 2018 was estimated at $10000. If the FIFO method were used, the Inventory value in the Balance Sheet at 31 May would be $ If the Identified cost method were used, the Inventory value in the Balance Sheet at 31 May would be $