2 Presented below are the production and period expenses of Sky Berhad for the year 20x6: Direct Materials Direct Labour Variable Factory Overhead RM1.30/unit RM1.50/unit RM1.20/unit RM 600,000 General and Administrative Expense Marketing and Sales Expense RM 200,000 Fixed Factory Overhead Interest Expense RM 300,000 RM 80,000 At the end of the year, the closing finished goods inventory of the company is 250,000 units. Opening inventory of the company is 100,000 units with a value of RM400,000. The production time of goods is short so there is no work in process inventory. Normal yearly production capacity of the company is 750,000 units but due to severe weather conditions actual production in 20x6 was only 450,000 units. The company uses FIFO method cost flow assumption. The inventory is sold at RM10 per unit. Required: Show how this information will affect the financial reports regarding inventories