The Department of Roads for a large Canadian city has several depots throughout the city where they store rocksalt. The rock-salt is used during the winter. The fiscal year starts on April 1 and ends on the following March 31. At April 12021 , they had an inventory of 2,000 tons of rock-salt worth $800,000. The following are transactions occurred during the fiscal year: - Summer and Fall 2021: Purchased 68,000 tons at an average price of $300/ ton - Months of December 2021 and January 2022: used 62,000 tons - February 12022: purchased 40,000 tons at $505/ ton - Month of February 2022: used 20,000 tons - March 12 2022: helped a neighbouring city that had run out of salt by giving them 20,000 tons in exchange for equipment worth $12.2 million Required: 1. Calculate the value of the rock salt in the remaining inventory at March 312022 based on: - FIFO - Weighted average - Periodic 2. Which method of inventory valuation do you recommend they use? Explain your response. The Department of Roads for a large Canadian city has several depots throughout the city where they store rocksalt. The rock-salt is used during the winter. The fiscal year starts on April 1 and ends on the following March 31. At April 12021 , they had an inventory of 2,000 tons of rock-salt worth $800,000. The following are transactions occurred during the fiscal year: - Summer and Fall 2021: Purchased 68,000 tons at an average price of $300/ ton - Months of December 2021 and January 2022: used 62,000 tons - February 12022: purchased 40,000 tons at $505/ ton - Month of February 2022: used 20,000 tons - March 12 2022: helped a neighbouring city that had run out of salt by giving them 20,000 tons in exchange for equipment worth $12.2 million Required: 1. Calculate the value of the rock salt in the remaining inventory at March 312022 based on: - FIFO - Weighted average - Periodic 2. Which method of inventory valuation do you recommend they use? Explain your response