Question 1 Lion Sdn Bhd is a manufacturer of garden furniture. The company has consistently used weightage average cost in valuing inventory, but it is interested to know the effect on its inventory valuation of using First-In First-Out method (FIFO). At 28 February 2010 the company had inventory of 4,000 standard plastic tables, and has computed its value on each side of the two bases as: Basis Unit Cast (RM) Toral Value (RM) FIFO Weghted average During March 2010 the movements on the inventory of tables were as follows: Date Number of unit Production Cost per unit Production: 8 March 3.800 15 22 March 6. 000 1 8 Revenue: 12 March 18 March 24 March 28 March 5,000 2000 3,000 2.000 Sellin price per unit 1640 13700 16.50 18.00 Required: (a) Using FIFO. compute cost of closing inventory. sales and gross profit/loss as at 31 March 2010 (b) Using Weightage Average Cost method. compute cost of closing inventory sales and gross profit/loss as at 31 March 2010 Show relevant workings. In arriving at the total inventory values you should make calculations to two decimal places where necessary) and deal with each inventory movement in date order. [20 marks]