Question 1: Creative Venture (CV) is a company that distributes variety types of chairs to offices and schools. The company uses perpetual inventory system and applies Moving-Average Method for Product Code AS172 and Specific Identification Method for Product Code ZS905. Followings are record on sales of Product Code AS172 and Product Code ZS905 for April 2020. Product Code AS172 Cost Flow Method: Moving-Average Method Date Unit Selling Price RM/Unit Purchase Price RM/Unit 20.00 22.00 Particular Beginning balance Purchase Sale Purchase Purchase Sale 01/04/20 06/04/20 10/04/20 18/04/20 25/04/20 30/04/20 60.00 24,000 11,500 8,000 30,000 1,000 9,000 33.00 35.00 132.50 Product Code ZS905 Cost Flow Method: Specific Identification Method Date Particular Unit Selling Price RM/Unit 01/04/20 10/04/20 19/04/20 26/04/20 Beginning balance Purchase Purchase Purchase 800 1,000 3,000 500 Purchase Price RM/Unit 70.00 120.00 100.00 110.00 REQUIRED: (Round all figures to TWO (2) decimal points) (a) Calculate the cost of inventory on hand as at 30 April 2020 and the cost of sales for the year ended 30 April 2020 for Product Code AS172. (6) On 30 April 2020, record shows that the ending balance of ZS905 is 2,000 that consists of 300 units from the beginning balance of April, 1,000 units from the purchase made on 10 April and 700 unit from the purchase made on 19 April. Calculate the cost of inventory on hand as at 30 April 2020 and the cost of sales for the year ended 30 April 2020 for Product Code ZS905. Briefly explain the situation suitable for using Specific Identification Method in inventory costing