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plewse solve the question below (Avco and Fifo) and their doffernce in value of stock Scenario- 1 Powertech Ltd is a manufacturing company founded by
plewse solve the question below (Avco and Fifo) and their doffernce in value of stock
Scenario- 1 Powertech Ltd is a manufacturing company founded by Mr. Rashid four vears ago, who is engineer by profession. The company manufactures power generation units. The demand for the product has increased in the last 2 years. The compary has hired new staff in production and administration due to the increase in demand. Mr. Rashid has approached a leading bank to provide additional finance for the expansion of the company. The bank is willing to grant the finance provided Company hire a full-time management accountant as accounting control system is not very systematic in the company due to Mr. Rashid's Englneerine backgound. He focusses more on the technical aspect of the business and as a result ignores the accounting part. Mr. Salim has been hired as a Management accountant of Powertech ttd. Recently. By looking at the accounts Mr, Salim realized that the company/s main component is material and inventory control system is lacking in the past and there is no record of Inventory documentation to identify quantities of imventory. Mr. Fashid explained that they do inventory control only once a year when the auditor comes, and he has no idea of imentory control. You have contacted the person who is responsible for purchasine and issuing material for production. Mr. Salim has realized that one item (SOKW Motor) which has a hich value. He decided to implement control on this item first. The following details are available regarding the 50KV Motor for the month of February. Individual Aisipameti-cul Semester 4. Fall 2023-24 se 4 Question 1 Use the above data and calculate Value of stock using FFO and AvCO methods of inventory valuation and evaluate difference between value of stock in both the methods Step by Step Solution
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