$ $ Question 2 The financial year of Clifford Ltd ("Clifford") ends at 31 December. (A) The company has the following items of inventories at 31 December 2018: Raw material Work-in-progress Product A B D E $ $ $ Cost to date 34 52 25 Cost to completion 37 41 Selling and transport costs 3 3 3 Estimate selling price: As raw materials 14 39 As work in progress As finished goods 62 80 55 15 22 10 21 22 3 3 13 12 5 48 48 1. Further information: Selling and transport costs will be incurred for the sales of raw materials, work in progress and finished goods. 2. Cost to completion are the additional costs required to convert the raw materials or work in progress to finished goods. Required: Determine the inventory value of each of the products for inclusion in the financial statements of Clifford at 31 December 2018. (10 marks) (B) The company bought some materials from a foreign supplier on 30 September 2018. The invoice value was R40,000 and was due for settlement in two equal payments on 30 November 2018 and 31 January 2019. The exchange rate moved as follows: 30 September 2018 $1 = R1.60 30 November 2018 $1 = R1.80 31 December 2018 $1 = R1.90 31 January 2019 $1 = R1.85 Required: Prepare the journal entries in the books of Clifford in relation to the above transaction, (10 marks) (Total 20 marks) $ $ Question 2 The financial year of Clifford Ltd ("Clifford") ends at 31 December. (A) The company has the following items of inventories at 31 December 2018: Raw material Work-in-progress Product A B D E $ $ $ Cost to date 34 52 25 Cost to completion 37 41 Selling and transport costs 3 3 3 Estimate selling price: As raw materials 14 39 As work in progress As finished goods 62 80 55 15 22 10 21 22 3 3 13 12 5 48 48 1. Further information: Selling and transport costs will be incurred for the sales of raw materials, work in progress and finished goods. 2. Cost to completion are the additional costs required to convert the raw materials or work in progress to finished goods. Required: Determine the inventory value of each of the products for inclusion in the financial statements of Clifford at 31 December 2018. (10 marks) (B) The company bought some materials from a foreign supplier on 30 September 2018. The invoice value was R40,000 and was due for settlement in two equal payments on 30 November 2018 and 31 January 2019. The exchange rate moved as follows: 30 September 2018 $1 = R1.60 30 November 2018 $1 = R1.80 31 December 2018 $1 = R1.90 31 January 2019 $1 = R1.85 Required: Prepare the journal entries in the books of Clifford in relation to the above transaction, (10 marks) (Total 20 marks)