Berdaya Bhd is a company that supplies plastic ware and plastic household products. The following information is available from the companys inventory records as at 30 June 2020.

Product	Ending Balance (Units)	Cost Per Unit (RM)
Plastic chair	6,000	30.00
Plastic table	1,000	35.00
Plastic drawer	1,500	40.00
Plastic water container	1,200	10.00
Heavy duty plastic basket	2,000	15.00

Due to the COVID-19 pandemic, the demands for plastic ware and plastic household products are affected. Thus, it is expected that the estimated selling price per unit and selling cost per unit as at 30 June 2020 for each of the product are as below: Due to the COVID-19 pandemic, the demands for plastic ware and plastic household products are affected. Thus, it is expected that the estimated selling price per unit and selling cost per unit as at 30 June 2020 for each of the product are as below:

Product	Estimated Selling Price Per Unit (RM)	Estimated Selling Cost Per Unit (RM)
Plastic chair	34.00	2.00
Plastic table	36.00	3.00
Plastic drawer	40.00	2.50
Plastic water container	11.50	2.00
Heavy duty plastic basket	15.80	2.00

To comply with the requirement prescribed by the MFRS 102 Inventories, Berdaya Bhd has taken an approach to value its inventory at the Lower of Cost or Net Realisable Value (LCNRV).

Additional information:

1. Berdaya Bhd applies the loss method and Allowance account to record the write down of the inventory to net realisable value (NRV).
2. The company uses the item by item approach to calculate the LCNRV.
3. No balance on the Allowance to Reduce Inventory to NRV account as at 30 June 2020.
4. The financial year end for Berdaya Bhd is on 30 June.

REQUIRED:

(Show your workings)

1. Determine the LCNRV and the value of total inventory that should be reported as at 30 June 2020.

2. Prepare the journal entry at 30 June 2020 to account for the write-down of the inventory to NRV.

3. Show a partial of Berdayas statement of financial position as at 30 June 2020 to present the information on its inventory.

d. Assuming that on 30 June 2020, the account of Allowance to Reduce Inventory to NRV indicated a credit balance of RM5,500.

1. Determine the amount of additional loss of inventory OR recovery of inventory loss for the financial year end 30 June 2020.

2. Prepare the relevant journal entry for (d)(i) above.

e. What are the conditions for a company to use the group of similar item approach in determining the LCNRV?