PROBLEMS FOR GROUP 7 1. Prepare the Inventory records.

DATE	PARTICULARS	PRICE PER UNIT
1.01.2021	Balance in inventory was 800 bags of rice	OMR 4.100 per bag
2.01.2021	Purchased 1,000 bags of rice	OMR 4.250 per bag
4.01.2021	Sold 1,020 bags of rice
6.01.2021	Purchased 440 bags of rice	OMR 4.150 per bag
8.01.2021	Purchased 200 bags of rice	OMR 4.050 per bag
10.01.2021	Sold 840 bags of rice
15.01.2021	Purchased 500 bags of rice	OMR 4.400 per bag
18.01.2021	Sold 800 bags of rice

Required: Prepare the inventory records using the First-In-First-Out method 2. The Zohar Utility organization purchased, on 1st January 2021, a machine producing recyclable plastic moulds. The machine cost OMR 32,000 and was estimated to have a five-year life with a residual value of OMR 2,000. The company plans on using one out of the two most important methods of deprecation which are straight line & Written down value methods. The CEO wants to decide on which method based on a few calculations that he asks you to perform which are given below. Prepare the required calculations to help the CEO arrive at a final decision. Required (a) Prepare a table of depreciation and net book values over the five-years using straight-line depreciation. (b) Prepare a table of depreciation and net book value over the five years using reducing-balance depreciation. (c) Using the straight-line method of depreciation, show the effect of selling the asset at the end of Year 3 for a price of OMR 5,000. (d) Using the reducing balance method of depreciation, demonstrate the effect on disposing the asset at the end of Year 4 for OMR 25,400.