Mr  Luis Rodriguez is the financial manager of Hull plc, a UK company which is located in the east of London

Subject:AccountingPrice:5.01 Bought3

Share With

Mr  Luis Rodriguez is the financial manager of Hull plc, a UK company which is located in the east of London. Hull Plc has the following inventory transactions: Day 1 Opening inventory nil Day 2 Purchased 50 units at £15 per unit Day 3 Sold 20 units at £35 per unit Day 4 Purchased 60 units at £17 per unit Day 5 Purchased 80 units at £30 per unit Day 5 Sold 30 units at £40 per unit You Are Required To: i) Apply the Average costing method to each transaction and calculate the closing value of inventory (6 Marks) ii) Prepare the report to critically evaluate the LIFO and FIFO inventory valuation methods and advise which method is better. In addition, explain which method Hull plc should use to remain IAS 2 compliant