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Question 3 Chickpeas is one of the key ingredients of hummus and derivative products by...

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Question 3 Chickpeas is one of the key ingredients of hummus and derivative products by Greek Foods Ltd in the UK. In recent times the price of chickpeas has been rising. On February 2021 there was an opening inventory pf 50kg valued at 30 per kg. During the month of February, the following quantities of chickpeas were received and issued to production. Date Issues and Receipts 2 February Issued 25 kg to production 3 February Received 100 kg at 35 per kg 6 February Issued 50 kg to production 8 February Issued 50 kg to production 10 February Received 25 kg at 40 per kg 15 February Issued 25 kg to production 20 February Received 50 kg at 42 per kg Required (a) Record the entries in the inventory account using the first in, first out (FIFO) method for pricing issues and valuing balances of inventory after each issue. (9 marks) (b) Record the entries in the inventory account using the continuous weighted average (CWA) method for pricing issues and valuing the balance of inventory after each issue (11 marks) (c) Discuss whether it matters if FIFO or CWA is used in product costing

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