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Details TZS TZS TZS TZS
Opening inventory 167,200 250,800 334,400 167,200
Net purchases 792,000 946,000 1,012,000 330,000
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Net sales 1,232,000 1,540,000 1,760,000 572,000
Expenses 330,000 420,200 308,000 99,000
Closing inventory 250,800 334,400 167,200
The inventory salvaged was TZS 33,880. The practice of the firm is to value inventory
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at 5 per cent less of cost.
Required: Determine the amount of claim to be recovered from the insurance
company by Pambe Ltd.
10. Analyse and emphasize the strengths and weaknesses of each of inventory
valuation method. Discuss scenarios where one method might be more suitable
than others.
11. Explain the rationale of each method and its implications on inventory control.
Student’s Book Form Five
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