a) Grantown Ltd is a London-based fine art dealer, buying works of famous artists for prices ranging upwards from 10,000 and selling them with a margin added of at least 20%, Discuss with reasons whether which of the following inventory valuation methods would be most appropriate for Grantown: FIFO, LIFO, Average Cost or Specific Identification. (3 marks) b) During the 1970s UK inflation, measured by the Retail Price index, was as high as 25.1%. Since 2009 UK inflation has been low and stable at between 0.5% and 3%. Discuss whether FIFO or LIFO is better at reporting the value of stock in financial statements under conditions of high inflation. (3 marks) c) Aviemore Ltd is a wholesaler of fence panels. In the year to 31 December 20X2 it sold 24,000 panels. It purchased panels throughout the year as shown below: Number of Unit Price Units 1 January 20X2 31 March 20X2 12,000 10.5 8,000 10.66 2 June 20X2 6,000 11.12 8 November 20X2 5,500 11.27 i) What is the value of inventory using the FIFO method of inventory valuation? ii) (3 marks) What is the value of inventory using the average cost method of inventory valuation? (3 marks) See next page 14 (continued) d) Nairn Ltd has the following three products in stock at its financial year end. Product Quantity Cost Selling Price Selling cost A B C 2,000 750 36 26 1,300 23 48 10 38 8 27 5 What should be the value of inventory reported under FRS 102