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6 uring its first month of operations, the company made purchases and sales as shown in the table below 24. It is the company's policy to measure their inventory using the First In First Out (FIFO). Unit cost Number of units Number of units purchased sold 100 220 400 Date March 4 March 11 March 16 March 18 March 23 March 28 200 450 550 2.00 2.50 2.75 All sales were made at E4 each. (a) Calculate the inventory value held at the end of the month. (b) Calculate the cost of sales and the gross profit for the month. (c) [5 marks] [10 marks] Discuss the accounting principles are applied in the measurement of inventory [5 marks] and cost of sales? [Total 20 marks] 25. The following information is available about two companies, A Ltd and B Ltd. A LtdB Ltd E000s 4,000 2,800 3,0003,000 2,200 1,800 250 300 E000s Book value of fixed assets Sales Cost of sales Average stocks (inventory) Based on the information presented above, calculate two efficiency ratios for both A Ltd. and B Ltd. (a) [8 marks] (b) Compare the results in (a) above and provide your comments [8 marks] (c) Explain the benefits of using ratio analysis to judge the performance of companies [4 marks] [Total 20 marks]