Question 1

Syarikat Layar manufactures boats. During September 2020, the company purchased 100 cellular phones at a cost of RM130 each. Syarikat Layar withdrew 70 phones from the warehouse during the month. Twenty of these phones were installed in salespersons' cars and the remaining 50 phones were put in boats manufactured during the month.

Of the boats put into production during September 2020, 80% were completed and transferred to the company's storage lot. Fifty percent of the boats completed during the month were sold by September 30.

Required:

Determine the cost of cellular phones that would appear in each of the following accounts on September 30, 2020:

i. Raw materials inventory

ii. Work in process inventory

iii. Finished goods inventory

iv. Cost of goods sold

v. Selling expenses