The purchase officer at FIFA Ltd. wanted to ask the accountant some questions about the recording of inventory costs. Suppose you are the accountant. 1. He knows that the cost of the inventory items coming into the warehouse is $400 per unit. But, he wants to know why the cost of freight and import duty is added to the price of the product for costing purposes. Provide an answer to the purchase officer. 2. He also knows that because FIFA Ltd. buys such large quantities that the supplier pays a rebate for each unit purchased by FIFA Ltd. He wants to know whether the firm is right in deducting the amount from the total amount from the total cost of Sales in the Income Statement or whether it should be allocated to the cost per unit of the product that FIFA Ltd. purchases. Provide an answer to the purchase officer. 3. As the accountant, explain what is the effect on the Income Statement by showing the total of the rebate as a deduction from the Cost of Sales on the Gross Profit of FIFA Ltd. compared to allocating the rebate to each unit of inventory? 4. Assume the physical stocktake on 30 June showed that there were 100 units on hand but the inventory as recorded by the purchaser officer showed there were 120 units in the warehouse. If each unit was costed at $700 each, prepare the general journal entry to record the difference. A narration is required. (2+2+2+2 = 8 marks)