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 $2024$:

$\backslash$table$[[$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$)$