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QUESTION 3 Table below shows the ending inventory of FS Bhd at cost and at LCNRV at 31 December 31 2017; 31 December 2018; and
QUESTION 3
Table below shows the ending inventory of FS Bhd at cost and at LCNRV at 31 December 31 2017; 31 December 2018; and 31 December 2019.
| Costs (RM) | LCNRV (RM) |
31 Dec 2017 | 325,000 | 325,000 |
31 Dec 2018 | 390,000 | 356,000 |
31 Dec 2019 | 452,500 | 415,000 |
REQUIRED:
- Prepare the journal entries at 31 December 2018 and at 31 December 2019, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV is used.
b. Prepare the journal entries required at 31 December 2018 and at 31 December 2019, assuming that a perpetual inventory system and reduced to LCNRV using the loss method.
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