Question 4 Pistachio is one of the key ingredients of the products made by Healthy Cake Ltd, but during the first quarter of 2020, prices were rising. On 1 March 2020, there was an opening inventory of 50 kg valued at f30 per kg. During the month, the following quantities of Pistachio were received and issued by the stores: 2 March Issued 25 kg to production 3 March Received 100 kg at $35 per kg 6 March Issued 50 kg to production 8 March Issued 50 kg to production 10 March Received 25 kg at f40 per kg 15 March Issued 25 kg to production 20 March Received 50 kg at $42 per kg Required a) Record the entries in the inventory account using the first in, first out (FIFO) method for pricing issues and valuing the balance of inventory after each issue. (9 marks) b) Record the entries in the inventory account using the continuous weighted average (CWA) method for pricing issues and valuing the balance of inventory after each issue. (11 marks) c) Recommend which of these two methods will give the business a higher gross profit for the month, giving ONE reason to support your answer. (2 marks) d) Justify your advice in (c) by explaining THREE of the main advantages of the method you have recommended