Question 3 (15 marks) An inventory ledger card shows the following details: March 1 70 units in inventory at £20 per uni

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Question 3 15 Marks An Inventory Ledger Card Shows The Following Details March 1 70 Units In Inventory At 20 Per Uni 1 (77.05 KiB) Viewed 36 times

Question 3 (15 marks) An inventory ledger card shows the following details: March 1 70 units in inventory at £20 per unit March 8 120 units purchased at a cost of £22 per unit March 22 130 units sold at a price of £40 per unit 3a) Using the weighted average (AVCO) method of valuing closing inventory calculate the cost of sales for March. (4 marks) 3b) Explain why the use of "AVCO” in this instance would report a lower gross profit when compared with the first in, first out (FIFO) of valuing closing inventory. You may use calculations to support your answer. (7 marks) Daffodil had a credit balance on its trade payables control account of £110,000 at a 1 April 2021. During the year, it made purchases of £420,000 (£360,000 of which were on credit). It paid £270,000 to its credit suppliers. It also received a cash discount of £22,000 and made returns of £11,000. Зc) Prepare the trade payables control account for the year ended 31 March 2022 (4 marks)