L'Oral sells a bottled night repair facial cream. The following relates to the activities of the business during June 2020: June 8 June 23 Purchased 10,000 bottles, purchase price $40.00 per bottle Purchased 15,000 bottles, purchase price $41.20 per bottle Closing inventory as per physical stocktake is 22,000 bottles June 30 Additional information i Four thousand bottles of the closing inventory have passed their use by date and cannot be sold for human use. However, they can be sold to an arts supplies store for use in pigments in craft paints for $17 per bottle. These bottles were originally purchased on June 8. ii Transportation from the supplier to L'Oral costs $4 per bottle. iii Transportation from L'Oral to department stores costs $5 per bottle iv Transportation from L'Oral to the arts supplies store also costs $5 per bottle v L'Oral pays both sets of transportation costs. vi The latest selling price for inventory yet to reach its use by date is $85 Required: a) Briefly explain why the FIFO method is the most appropriate method to measure inventory cost flow for the facial cream product of L'Oral. (2 marks) b) Calculate the value of closing inventory for L'Oral at 30 June 2020 as provided for in AASB 102, applying the FIFO (first-in-first-out) method. Justify all aspects of your calculation. (8 marks) c) What item and its amount would be shown in the Income Statement extract for L'Oral for the month ended 30 June 2020 in relation to the information in part (b). (1 mark) d) What items and their amounts would be shown in the Balance Sheet extract for L'Oral as at 30 June 2020 in relation to the information in part (b). (1 mark)