QUESTION 2 Inventory is one of the most important assets in a company's statement of financial position. To this effect, the IASB issued IAS 2 inventory, which among other things deals with the valuation and presentation of inventory in the books in the books of account and financial statements. Required (a) state IAS 2 inventory and explain how inventory is expected to be presented in the books of accounts and financial statements. (2 marks) (b) You operate a hardware shop. You are given the following information regarding movement of cement stocks during the year ended 31 March 2022. 01-Apr-21 15-Jun-21 Opening inventory 200 Units Purchases 500 Units Unit price(K) 55 58 08-Aug-21 Sales 300 Units 03-Oct-21 Sales 300 Units 05-Dec-21 Purchases 200 Units 63 05-Jan-22 Purchases 300 Units 66 02-Feb-22 Sales 200 Units 20-Mar-22 Sales 200 Units Show how the issues and closing inventory would be determined, using (i) FIFO (ii) AVCO (9 marks) (9 marks)