QUESTION TWO Pepper Spray &Treason Ltd maintains its stores ledger on the basis of LIFO method. Management wonders how the costs would change if they used FIFO or AVCO methods. The following is the summary of the receipts and issues of raw materials during the month of April 2016: April 01 Opening balance 300 units@ K22 per unit "03 Issue vide Material requisition No. 1404, 150 units. "08 Purchase order No.0704, 200 units @ K25 per unit. " 12 Purchase order No.0904, 400 units@K23 per unit "17 Issue vide Material requisition No.1604, 500 units. "20 Issue vide Material requisition No.1804, 100 units. "23 Purchase order No. 1104, 600 units @ K20 per unit. 25 Issue vide Material requisition No.26, 600 units. "28 Purchase order No. 1204, 200 units@ K26 per unit. " 29 Issue vide Material requisition No.3204, 300 units "30 Shortage 10 units (include in issue) at shet e e You are required to: [10 marks Prepare the ledgers for this firm on the basis of FIFO a. Prepare the ledger for this on the basis of AVCO b. [10 marts Compare the two methods and recommend which one would be preferable. [5 marks Total [25 Marks c