Question

marks) QUESTION 5 Kegin Company sells many products. Whamo is one of its popular items. Below is an analysis of the inventory purchases and sales of Whamo for the month of March. Kegin Company uses the perpetual inventory system. Purchases Sales Units Unit Cost Units Selling Price Unit 3/1 Beginning inventory 100 RM40 3/3 Purchase 60 RM50 3/4 Sales 70 RM80 3/10 Purchase 200 RM55 3/16 Sales 80 RM90 3/19 Sales 60 RM90 3/25 Sales 70 RM90 3/30 Purchase 40 RM60 Required: (a) Using the FIFO assumption, calculate the amount assigned to the inventory on hand and the amount charged to cost of goods sold for March. (5 marks) (b) Using the weighted average method, calculate the amount assigned to the inventory on hand and the amount charged to cost of goods sold for March. (5 marks) (Total: 10 marks) QUESTION 6 Condensed statement of financial position and statement of profit or loss data for Orange Berhad appear below: Orange Berhad Statements of financial position December 31 Plant and equipment (net Investments Other current Account receivable (net) Cash 2017 (RM) 2016(RM)2015 (RM) 400,000 370,000 35.000 75.000 90.000 95.000 50,000 25.000 20.000 18.000 6.40,000 600 53000

Answer 1

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Solution -

1. FIFO Method -

FIFO Purchase Cost of Goods Sold Unit Cost Total Cost Unit Unit Cost Total Cost Date Description Unit Unit 100 60 Balance Unit Cost Total Cost 40 4,000 44 7,000 47 4,200 52 15,200 50 3,000 160 Beginning Inventory Purchase Sales Purchase 3/1 3/3 3/4 3/10 3/16 70 40 2,800 90 200 55 11,000 290 30 Sales 210 55 11,500 50 40 50 50 10 1,200 2,500 500 2,750 3,850 3/19 Sales 150 55 8,250 50 55 55 70 80 3/25 3/30 ale Purchase 55 57 4,400 6,800 40 60 2,400 120 300 55 16,400 280 49 13,600 120 57 6,800

Solution -

FIFO Cost of Goods Sold Ending Inventory 13,600 6,800

2. Weighted Average Method -

Weighted Average Method Purchase Cost of Goods Sold Unit Cost Total Cost Unit Unit Cost Total Cost Date Description Unit Unit 100 60 50 3,000 160 70 44 3,063 90 200 Balance Unit Cost Total Cost 40 4,000 44 7,000 44 3,938 52 14,938 52 10,817 52 7,726 52 4,121 54 6,521 55 11,000 3/1 3/3 3/4 3/10 3/16 3/19 3/25 3/30 290 Beginning Inventory Purchase Sales Purchase Sales Sales Sales Purchase 80 52 210 60 52 4,121 3,091 3,606 150 70 52 80 40 60 2,400 120 300 55 16,400 280 50 13,879 120 54 6,521

Solution -

Weighted Average Method Cost of Goods Sold 13,879 Ending Inventory 6,521