Tag (SQ): and explain unethical actions of a financial manager.

Aba Medical Supplies
Inventory
On 1 January 20Y0, Aba Medical Supplies held 300 units of an item of finished goods inventory. These were measured at a cost of GH¢ 22 each. During January 20Y0 three batches of finished goods were received into store from the production department, as follows:

Goods sold out of the inventory during January 20Y0 were as follows:

Customer
The financial manager of Aba Medical Supplies is a qualified accountant. She is aware that one of the company’s customers, a private doctor, is struggling to pay his bill to the company. He has explained that this is due to a need to pay legal fees as a patient has brought an action for negligence against him. The financial manager has telephoned other medical supply companies and warned them not to sell goods to the doctor, explaining why. She has also advised a personal friend, that is one of the doctor’s patients, to look for a new doctor as this one has been negligent.

Required
(a) Compute the cost of sales and inventory at 31 January 20Y0, applying the following basis of inventory valuation:
(i) FIFO
(ii) Weighted Average Cost (Average is updated after every transaction).
(b) Explain why the actions of the finance manager do not reflect the requirements of the IESBA Code.