Question 2 Brookdale Ltd is a small manufacturing company. Material MQ is one of the materials it uses in production. During the month of May 2023, the company made the following purchases and issues of the material: 1 May 2023 - Purchase 800 units at RM11 each 5 May 2023 - Purchase 900 units at RM11.50 each 15 May 2023 - Sold 500 units at RM20 each 20 May 2023 - Purchase 400 units at RM12 each 25 May 2023 - Sold 300 units at RM25 each 31 May 2023 - Sold 500 units at RM23 each Required: a) b) Calculate the value of the closing inventory as at 31 May 2023 using First In First Out (FIFO), and Weighted Average Costing (AVCO) Methods. (30 marks) Based on the calculation in a) above, compute the gross profit or loss using the two methods of inventory valuation and discuss the reasons for the differences in the figures. (10 marks)

Brookdale Lid is a small manufacturing company. Material MQ is one of the materials it uses in production. During the month of May 2023, the company made the following purchases and issues of the material: 1 May 2023 - Purchase 800 units at RM11 each 5 May 2023 - Purchase 900 units at RM11.50 each 15 May 2023 - Sold 500 units at RM20 each 20 May 2023 - Purchase 400 units at RM12 each 25 May 2023 - Sold 300 units at RM25 each 31 May 2023 - Sold 500 units at RM23 each Required: a) Calculate the value of the closing inventory as at 31 May 2023 using First in First Out (FIFO), and Weighted Average Costing (AVCO) Methods. (30 marks) b) Based on the calculation in a) above, compute the gross profit or loss using the two methods of inventory valuation and discuss the reasons for the differences in the figures. (10 marks) Brookdale Lid is a small manufacturing company. Material MQ is one of the materials it uses in production. During the month of May 2023, the company made the following purchases and issues of the material: 1 May 2023 - Purchase 800 units at RM11 each 5 May 2023 - Purchase 900 units at RM11.50 each 15 May 2023 - Sold 500 units at RM20 each 20 May 2023 - Purchase 400 units at RM12 each 25 May 2023 - Sold 300 units at RM25 each 31 May 2023 - Sold 500 units at RM23 each Required: a) Calculate the value of the closing inventory as at 31 May 2023 using First in First Out (FIFO), and Weighted Average Costing (AVCO) Methods. (30 marks) b) Based on the calculation in a) above, compute the gross profit or loss using the two methods of inventory valuation and discuss the reasons for the differences in the figures. (10 marks)