The Arco Company started to use a new chemical compound in its manufacturing processes in April, 2017. The following purchases were received during 2017:

a) Determine the cost of the used compound in 2017 and the value of the closing inventory (material remaining) as of 31st December 2017, using (a) FIFO (first in first out), (b) LIFO (last in first out), and (c) average price.

b) Discuss which is the more realistic inventory valuation.

c) Discuss which is the more realistic figure for the cost of compound consumed during 2017?

Number of kilogramsPrice per kilogram Date of receipt April 12 May 17 August 28 September 20 2,000 1,000 1,000 2,000 $5.70 6.55 6.00 6.15 The following withdrawals and use of this compound were made in 2017 Date of withdrawalNumber of om stockroom May 10 uly 27 August 22 November 1 November 29 kilograms 1,000 500 750 500 1,500