WW Trading Ltd is a company operating in the retail sector. WW Trading uses periodic inventory system to record inventory transactions. The beginning inventory of Product KXL1 and information about purchases and sales made during October 2020 are shown below.

Date	Details	No. units	Unit cost
1 Oct	Inventory Balance	2,200	$22
9 Oct	Purchases	2,100	$24
15 Oct	Sales	1,900
21 Oct	Purchases	1,800	$25
29 Oct	Sales	2,700

Selling price of KXL1 is $28 per unit.

Required:

1. Calculate the value of inventory on hand at 31 October 2020 using the weighted average cost inventory valuation method.

(4 Marks)

2. Due to the bad economic condition and lowering of demand for KZL1,the expected unit selling price of the item is lowered to $22.00 on 31 October 2020.

1. At what value should KLZ1 be reported in the Balance Sheet at 31 October 2020? Provide a reason for your answer.
2. What is the effect on Net Profit for October 2020 as a result of the reduction of the selling price of the KZL1?