Financial Accounting & Reporting 2: Inventories

(There are 3 questions with attachment)

QUESTION 1

IT Tech Bhd follows the practice of valuing inventory at the Lower of Cost or Net Realizable Value (LCNRV). The following information is available from the company's inventory records as of 31 December 2018.

Wooden Bamboo Rattan Metal Glass Acrylic Furniture Furniture Furniture Furniture Furniture Furniture (RM) (RM) (RM) (RM) (RM) Historical (RM) cost - FIFO |213.500 122.500 178.500 21.500 50.000 25.000 method (in total) Estimated selling price 4.125 4.375 5.125 1.875 2.500 750 (per unit) Estimated 750 1.750 3,500 1.000 1.250 375 cost to complete and sell (per unit) Number of 40 32 40 40 56 40 units\fItem Quantity Cost per Unit Estimated selling Completion and (RM) Price/ Unit (RM) Selling Cost /Unit Speaker 300 65.00 75.50 4.60 Keyboard 550 25.00 33.90 2.80 Pendrive 800 18.00 16.60 0.65 Monitor 230 135.00 142.30 8.70