Ceritaku Sdn Bhd sells magic pens. The inventory records of the magic pens show the following data for the month of December, 2020).

Units Unit cost

(RM)

(Inventory), 1/12/20 100 3.35

(Purchases), 8/12/20 450 3.50

(Purchases),18/12/20 350 3.70

(Ceritaku sold 300 units magic pens on 10th December and 350 units on 20th December at a selling price of RM10 per unit. All are credit sales business transactions).

(Required):

(a) (Calculate the value of ending inventory and cost of goods sold for the period ended 31st December, 2020, if the company uses last in first out (LIFO) inventory costing and maintain a perpetual inventory recording system).

(10 markah/ marks)

(b) (Prepare entries in general journal format for business transactions dated 10th and 18th December, 2020).

(4 markah/ marks)

(c) (Briefly explain why perpetual inventory system is more reliable than periodic inventory recording system).

(2 markah/ marks)

B. (Pinson Enterprise uses the straight-line method for buildings and the declining-balance method at double the straight-line rate for equipment. On January 2, 2019, Pinson Enterprise acquired the following assets) :

(Asset)	Kos (Cost) (RM)	Nilai Sisa (Salvage Value) (RM)	Usiaguna Hayat (Useful Life)
(Buildings)	300,000	20,000	40 tahun (Year)
(Equipment)	141,000	11,000	10 Tahun (Year)

(Required):

(a) (Determine the annual depreciation of those assets for fiscal year 2019 and 2020 which ended on 31st December).

(4 markah/ marks)

(b) (Prepare the necessary journal entries for both assets at 31st December for fiscal year 2019 and 2020).

(6 markah/ marks)

(c) (Determine the net book value for those 2 categories of non current assets at 31st December, 2019 and 2020).