QUESTION 2 (15 MARKS: 27 MINUTES) Palma Putih Bhd began operations in 2020 by selling a single product. Data on purchases for the year are as follows: Purchases Date 18 April 9 May 13 June 10 July 16 August 14 October 12 November 9 December Units Purchased 2,300 2,500 2,600 2,300 1,700 800 500 500 Unit Cost (RM) 13.00 14.00 14.20 15.00 15.25 15.50 15.75 17.00 Total Cost (RM) 29,900 35,000 36,920 34,500 25,925 12,400 7,875 8,500 On 5 January 2021, the president of the company, Mr. Haikal, reported 5,000 units physical inventory from stock count that was taken on 31 December 2020. Other financial information for Palma Putih Bhd for the year ended 31 December 2020 are as follows: RM Detail Information Total sales Sales discount and allowance Salaries and wages expenses Distribution costs Administrative costs Finance costs Other expenses Taxation 362,500 12,000 48,000 22,000 39,000 3,000 3,500 36,000 REQUIRED: (a) Determine the cost of inventory under the periodic system using First-In, First-Out (FIFO) method as at 31 December 2020. (3 Marks) (b) Determine the net profit for the year under ended 2020. (8 Marks) (c) Palma Putih Bhd plans to expand its product line. Therefore, the president asked for your advice on the use of a perpetual inventory system in the future. Discuss TWO (2) advantages and TWO (2) disadvantages of using a perpetual inventory system. (4 Marks)