ASSIGNMENT QUESTION 1 At 30/6/2020 a full physical inventory was carried out showing the following: Raw materials Items A and B = 3,000 units at a cost of 5 per unit Item C = 1,000 units cost 1 per unit, but no longer used by the business with a resale value of 60 cents per unit Finished goods 200 units 1,900 units were produced during the year (planned / normal capacity 2,000 units). Cost to produce: materials 129,380, direct labor 121,000, variable overheads 73,000 and fixed overheads 52,500 What is the value of closing inventory?

ASSIGNMENT Q2 Temera lts has an agreement with a number of its retailers whereby items are provided on a sale or return basis. Retailers pay on a 60 day credit terms and return any unsold items at that date. Temera ltd makes a standard 20% mark-up on all goods sold. Items were provided to retailers during February 2020. Sales 27,000 on the sale or return basis were made and were recognized as part of revenue during February 2020. What are the necessary adjustments to be made in the financial statements of Temera for the year ended 31/3/2020?