Papaya Ltd started selling Cold’s toys since 2023. The company adopted the weighted-average method
as a basis for determining the cost of inventories since the production of Cold is every quarter and the
selling of the product is quite fast.
Details of costs are as follows:
Date Unit Completed (RM) Unit Cost (RM)
2 March 2023 200 75
1 July 2023 300 80
15 September 2023 150 90
25 November 2023 200 85
Details of sales are as follows:
Date Unit Sold Unit Price(RM)
31 March 2023 100 110
10 August 2023 230 120
23 October 2023 100 115
20 December 2023 300 118
The closing inventory was counted on 31 December 2023 and found to be 120 units.
Required:
i. Calculate the cost of inventory at the financial year ended 31 December 2023 (show the
inventories ledger sheet). [21 Marks]
ii. Prepare extracts from the Statement of Profit and Loss for the year ended 2023.