Blessings Limited uses material called zola which is measured in kilogram for its production. In the month of January, 2014, the following transactions in respect of the material occurred:

Jan.1 Opening inventory of 100 kg at GHS2 per kg

Jan.2 Purchases 200kg@ GHS4/kg

Jan.9 Issued 200kg @ GHS20/Kg

Jan.15 Purchased 400kg @ GHS3/kg

Jan.19 Purchased 300kg @ GHS5/kg

Jan 20 sale agents paid commission of GHS1.50 on each kg sold to date

Jan.22 Issued 600kg @ GHS30 each

Jan 31 returned to stores half of goods issued on Jan 9

Jan 31 any outstanding sales agents paid in full whereas rent and rates of GHS 2,000 is accrued.

Required:

i) Prepare a store ledger account using Weighted Average Method (WAM) to account for the month of January, 2020.

ii) Prepare the income statement of the company and show the profit for the month of January

iii) Explain two (2) advantages and disadvantages each of WAM in accounting for materials