The following information are extracted from Katlungus business.

Bought

March

September

Sold

100 at K16 each December 130 for K24 each 220 at K19 each

Calculate the closing inventory in trade that would be shown using

(i) FIFO, (ii) AVCO methods.

(b) Using information in question (a) above draw up the trading account for the year showing

the gross profits that would have been reported using

(i) FIFO (2 mark) (ii) AVCO methods. (4 maks)