Question 1 (20 marks) Perabot Sdn Bhd is a small furniture retailer. At year end, the business inventory quantity and value was based on its inventory stock cards. This inventory consisted of the following items; I. Chairs, model N1015 which costs RM5,600. However, due a change in consumer tastes these chairs can only be sold at 80 percent of its cost price. Furthermore it will cost RM200 to market the chairs. ii. 300 units of tables, model P99T with a total cost of RM5,000. These are usually sold at RM20.00 each. However, due to low demand for this product, it is expected to be sold for only RM18.00 in the following year. Selling costs will be RM1.00 per unit. iii. 100 units of mattresses with a total cost of RM20,000. This product can be sold for a total of RM25,000. Selling costs are expected to total RM2.00 per unit and a trade discount of 10% of the selling price will be given to customers. iv. 30 units of cushions with a total cost of RM300. This product can be sold for RM15 per unit. No other costs are anticipated when selling this product Required a. For each of the following situations determine the value of the inventory. Workings. must be shown (8 marks) b. Determine the value of the inventory that would appear in the financial statements of Perabot. (2 marks) c. Explain the effect if the value from the stock cards was used. (5 marks) d. Explain the reason(s) for the adoption of the Net Realisable Value method of valuation