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please provide me answer fot marked RED Dot questions Task 3: Inventory valuation f) DIBS trading recorded the following data of purchases and sales for
please provide me answer fot marked RED Dot questions
Task 3: Inventory valuation f) DIBS trading recorded the following data of purchases and sales for the month of January 2020. Date Purchases January Quantity Price per unit No. (RM) 1 1,200 1.00 4 1,000 1.05 sales Quantity Price per No. unit (RM) 6 800 1.70 12 600 1.10 15 600 1.90 18 900 1.20 1,100 2.00 20 25 800 1.25 PAGE NO. 14 OF 18 28 1,300 2.00 29 700 1.30 31 400 2.05 You are appointed as a new manager in finance department. There is new product line introduced in DIBS and the HQ requested you to identify which of inventory valuation is the best method to used by DIBS trading. You are planning to respond to the HQ queries by providing the following computation:- i. FIFO (first in, first out) (30 marks) ii. AVCO (weighted average cost). (15 marks) iii. Compare the GROSS PROFIT derived from FIFO method and AVCO method (5 marks) Suggest the stock valuation method to be used by DIBS trading. (1 marks) b) Identify the advantages and disadvantages of the method suggested in (g)Step by Step Solution
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