Question 2

1. A company has the following data:

Bought	Sold
January 400 units at RM55 each
February 250 units at RM60 each
	April 150 units at RM70 each
May 200 units at RM62 each
	July 300 units at RM72 each

Required:

Using the perpetual system, perform a stock valuation using the FIFO, LIFO and AVCO methods. (15 marks)

2. Prepare the journal entries for the following transactions in a job costing system:
   1. Purchased raw material from a supplier on credit RM200,000. (1.5 marks)

2. Direct raw materials issued for production RM160,000. (1.5 marks)
3. Indirect raw materials issued for production RM40,000. (1.5 marks)
4. Wages incurred was RM250,000, of which RM200,000 was paid to employees by cheque and RM50,000 comprised wage deductions.

(1.5 marks)

5. Allocation of wages for production comprised direct wages of RM220,000 and indirect wages of RM30,000. (1.5 marks)
6. Factory machinery and equipment were depreciated at a total of RM20,000.

(1.5 marks)

Overhead expenses totalling RM80,000 were charged to jobs through factory overhead absorption rates. (1 mark)