Mose Limited buys and sells mobile phones and accessories. Mose Ltd purchases in bulk to attract discounts hence selling at competitive prices. Moses Bwalya, the chief executive officer has asked you to help in the accounting and valuation of inventory. The following information was made available: March 1 balance b/f 1,400 units at K800 per unit Purchases: Date Quantity Price (Units) (K/unit) March 3 800 1,200 March 6 400 1,400 March 12 1,000 1,800 March 23 500 2,100 March 25 500 2,100 March 26 200 2,250 March 29 350 2,300 March 30 600 2,350 March 31 650 2,400 Sales: Date Quantity Price (Units) (K/unit) March 2 750 1,500 March5 315 1,750 March 10. 650 2,200 March 15 650 2,455 March18 800 2,455 March 24 550 2,650 March 27 270 2,700 March 28 BOO 2,700 Required: (a) Prepare the inventory valuation sheet using the following: (i) First in Last in (FIFO) (i) Last in first out (LIFO) (i) Weighted Average (AVCO) (6 marks) (6 marks) (6 marks) (b) Prepare the profit statement using all the three methods above in (a). (c) Mose Limited is reviewing its inventory control policy with regard to materials. You are told that the cost of making one order is K100, the cost of holding one unit for one year is KO.25 and the annual demand for phones is 80 000. There is neither lead time nor buffer inventory. (1) Calculate the Economic order quantity (EOQ) (2 marks) (ii) Calculate the annual holding costs and annual ordering costs using the EOQ. (Show the formula in each part) (3 marks) [Total 23 marks]