EXERCISE 1.0

The following were transactions carried out by Ally Sdn Bhd until 31 May 2008

Date	Transaction	Amount
2 May	Sold	30 kg
5 May	Purchased	60 Kg @ RM160
15 May	Purchased	80 kg @ RM195
22 May	Sold	120 kg @ RM220
26 May	Returned to supplier	5 kg
29 May	Sold	30 kg

Ally Sdn Bhd is involved in supplying fish. The information above are for the month of May 2008.

On 1 May, the company had a stock of 50 kg of fish worth RM 150.

Required :

1. Using the first-in, first-out (FIFO) and Weighted-average cost method, calculate the value of inventory
2. Prepare extract from Statement of Profit and Loss to determine the gross profit
3. Discuss the difference between both methods towards the gross profit and inventory value