QUESTION $3[20$ MARKS$]$

ABC Book Centre trades in textbooks. The company$$s selling price for the month of June $2024$

was P$500$ per textbook. The following information was extracted from their records for the

month of June $2024$:

Date Description

$1$ June Opening balance of $1800$ books with total value of P$360,000$

$5$ June Sold $1200$ textbooks

June $9$ Bought new $300$ textbooks at P$220$ each

June$12$ Bought $200$ new batch of textbooks at Price P$230$ each

June $21$ Sold $1000$ textbooks

June $25$ Customers returned $100$ textbooks sold $5$ June. This was later resold

June $28$ Bought textbooks worth P$200,000$ each costing P$250$

June $30$ Sold $600$ textbooks

Required

a$)$ Calculate the value of the company$$s closing stock using the following methods:

i$.$ FIFO $(6$ marks$)$

ii$.$ LIFO $(6$ marks$)$

iii. Weighted Average Cost $(6$ marks$)$

b$)$ Explain how the Just$-$in$-$Time $($JIT$)$ concept is applied to inventory management. $(2$ marks$)$