Fairvalue Ltd is a wholesale distribution firm which has provided you with the following information from stores in relation to a particular product line CRIS20

Date	Details	Units	Unit Prize (BWP)	Value (BWP)
08/3/12	Delivery from Manufacture	500	10	5,000
12/3/12	Delivery from Manufacture	100	11.20	1,120
17/3/12	Issued to sales	400
25/3/12	Delivery from Manufacture	300	11.50	3,450
27/3/12	Issued to sales	250

Sales of 650 units @ P20 per item are recorded for the month. There is an opening stock of 250 units, valued at P2 000 at 1st March 2012.

Required:

a. Calculate the gross profit for the month of March 2012 using each of the following methods of inventory valuation:

(i) FIFO. (6 marks)

(ii) LIFO. (6 marks)

(iii) Weighted average.

b. Explain which inventory valuation is most relevant for decision making purposes.