ASSIGNMENT FOUR The new CEO of the Sedem Ltd, Alhajie Sepenoo attended a global conference on "effective cost and inventory management for Non-Accounting Senior Managers of both private and public sectors" in the last week of October,2019 in Alaska City of Northern Ashaiman State before the COVID 19 outbreak all over the globe. In the closing remarks, the course facilitator drew the attention of the participants of the conference to the importance of establishing effective inventory management system as part of the overall corporate cost control strategy. The new CEO having been exposed to the basic rudimentary of inventory management system, he intends to explore further the practical understanding of what inventory management control system being used by the Cost and Financial Accounting Department of the company with particular reference to material pricing techniques. The new CEO, therefore, upon return from the conference joined the exit conference of company's External Auditors organized at the end of the annual audit of Sedem Ltd for the year ended December 31, 2019.During the exit conference, the External Auditors of the company had agreed with Management to change the stock valuation policy from Simply Average method to First-In-First-Out (FIFO) method in order to conform with the industry requirements, effective January 1,2020 after intensive discussions were made in respect of merits and demerits of both old and new stock valuation methods were advanced. Subsequently, the out-going Cost and Management Accountant has provided the following information relating to the operations for the next six months period ending June 30,2020; 1. Closing balance as at December 31, 2019, the business had 1,000 boxes at a cost of GH18.00 per tonne. 2. During the first half of the year, the business purchased and sold the following: Purchases Sales Date Qty of Boxes Qty of Boxes Unit Cost (GHC) 1-Jan 1000 36.00 31-Jan 2000 38.00 28-Feb 2500 50.00 1-Mar 3000 40.00 30-Mar 2000 35.00 3000 45.00 30-Apr 30-May 30-June 2500 28.00 2000 38.00 3. Other operational expenses (excluding depreciation on Plant & Machinery) amounted to GH16,000.00 4. Included in the other operational expenses was telephone owings amounting GH800.00. 5. Plant & Machinery cost GH52,000.00 and accumulated depreciation as at January 1, 2020 amounted to GH32,000.00. Depreciation is charged annually 20% annually using a straight-line method. 6. Extract of other closing balances of assets and liabilities for the period ending 30/06/2020 were as follows: Other Non-Current Assets (excluding Plant & Machinery) 10,000 Trade Receivables 15,500 1. Discuss Six (6) main objectives of inventory management system to corroborate the knowledge acquired by the new CEO from his recent global conference. IL Using the recommended stock valuation method prepare: a) An income statement for the first half year period ended June 30, 2020 and b) Statement of financial position as at the period ended June 30,2020