Question No 3: (10 Marks) Al Mina Vegetables Store is a Sole Proprietorship organization in Nizwa, Oman. The company is selling different types of vegetables across Oman. Since the company is a Merchandising company, they need an inventory accounting method for tracking inventory to help the owner to understand where money is being spent, as well as maintain appropriate inventory levels and also it helps to record and track accurate inventory amounts and in turn helps in providing accurate reporting. When the company reviewing the financial statements and trying to understand the workings of inventory, it needs an inventory accounting method to perform any analysis. The company uses perpetual inventory system to account for acquisition and sale of inventory. The company has made the following purchases and sales during the month of September 2018. Sep 01: Inventory at the beginning of the month; 500 kg @ RO 1.200 per kg. Sep 04: Sales: 200 kg Sep. 07: Purchases; 120 kg @ RO 1.300 per kg Sep. 10: Purchases; 100 kg @ RO 1.500 per kg Sep. 14: Sales: 160 kg Sep 23: Sales; 200 kg Sep. 24: Purchases; 300 kg @ 1.600 per kg. Sep. 27: Purchases; 400 kg @ 1.800 per kg Sep. 29: Sales; 150 kg During the month, all sales have been made @ RO 2.200 per kg Required: 1. Assuming that you are an accountant of the business, explain to the owner about different methods of inventory valuation and assist the owner for preparing a FIFO and LIFO perpetual inventory card and show the difference in each method. (5 Marks) 2. Calculate Gross Profit at the end of month and advise the owner which method will be suitable for the business