During June following transactions were as follows:

1 Opening inventory 0

4 Bought 800 computers at 45 each

7 Sold 400 computers at 100 each

8 Bought 600 computers at 48 each

15 Sold 500 computers at 100 each

19 Bought 600 computers at 52 each

22 Sold 700 computers at 100 each

25 Bought 600 computers at 58 each

28 Sold 550 computers at 100 each

Additional Notes

On 30 June 2022 no trading took place. An inventory check revealed that Bonnie had closing stock of 250 televisions in her company's warehouse.

Required:

(a) Record the above information using each of the following inventory cost flow assumptions:

first in, first out (FIFO);

last in, first out (LIFO), and

average cost (AVCO)

(b) Using the data from each of the three methods above, prepare extracts statement of profit and loss for June

(c) what are the the differences between these methods and the impact they have on profitability. EXPLAIN how to improve the company's controls through sound inventory management systems. Provide short report on each issue