Answer C and D

Answer Cand D Date 2 Brighton metals manufactures aluminum products for the petrochemical industry. The price of aluminum varies during the year. The following information was provided for the year ended 31 October 2021. Inventory of aluminum at 1 November 2020 was 10 tonnes a $1500 per tonne. Receipts (tonnes) November 2020 - January 2021 10 at $1400 February 2021 - April 2021 10 at $1300 May 2021 - July 2021 15 at $1250 August 2021 - October 2021 8 at $1200 Total 49 tonnes of aluminum was issued to production during the year ended 31 October 2021. Inventory is issued to production using the First In, First Out periodic valuation method. a) The value of inventory at 31 October 2021 using the First In, First Out periodic valuation method is $4800 The business is considering changing the method of inventory valuation to Last In, First Out. b) The value of inventory at 31 October 2021 using the last In, First Out periodic valuation method is $6000 c) Calculate the difference in profit if Brighton Metals had used the Last In, First Out method. d) Advice whether Brighton Metals should change the inventory valuation method from FIFO to LIFO. Justify your answer considering both advantages and disadvantages of these two method