QUESTION 2 Aman Bhd is a company that spesialised in producing office furnishings for industry-customers as well as for walk-in customers. The furnishings are grouped based on its materials. The following information is available from the company's inventory records as at 31 December 2019. Wooden Bamboo Rattan Metal Glass Acrylic Furniture Furniture Furniture Furniture Furniture Furniture (RM) (RM) (RM) (RM) (RM) (RM) Cost (in total) 213,500 122,500 178,500 21,500 50,000 25,000 Estimated selling price 4,125 4,375 5,125 1.875 2,500 750 (per unit) Estimated 750 1,750 3,500 1,000 1,250 375 cost to complete and sell (per unit) Number of 40 32 40 40 56 40 units Inventories are recorded at their cost. However, due to the market intense competition and declining in demand for company's product, the operation of Aman Bhd has also affected and its inventory has declined in value. Aman Bhd has taken an approach to follow the practice of valuing its inventory at the Lower of Cost or Net Realisable Value (LCNRV) method. Aman applies the loss method and uses an Allowance Account to record for the write down of the inventory to net realisable value. REQUIRED: (Round your answers to the nearest RM) (a) Assuming that Aman Bhd applies the LCNRV rule to each major groups of furniture. Determine the following items as at 31 December 2019: (1) Net Realisable Value (NRV) per major group. (11) Lower-of-Cost-or-NRV (LCNRV) per major group, and (111) The final amount of inventory. 1 (b) Prepare the journal entry at 31 December 2019 to account for the write-down of the inventory to NRV. Assuming the use of a perpetual inventory system. (c) Show a partial of Aman Bhd statement of financial position as at 31 December 2019 to present the information on its inventory. (d) Assuming that at the year-end 2019, the account of Allowance to Reduce Inventory to NRV had a credit balance of RM300,000. For the financial year end 2019, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory at Net Realisable Value. Prepare the related journal entry. d