Question 6 Jade Berhad is a manufacturer of plastic products. The company has consistently used FIFO (first-in, first-out) in valuing inventory, but it is interested to know the effect on its inventory valuation of using weighted average cost instead of FIFO. At 31 December 2019 the company had inventory of 8,500 standard plastic tables, and has computed its value of the tables on the two bases as: Basis Unit cost RM 20 22 Total value RM 170,000 187,000 FIFO Weighted average During January 2018 the movements on the inventory of tables were as follows: Date Number of unit Production Cost per unit Production: 8 January 22 January 4,200 6,000 18 18 Revenue: Selling price per unit 22 20 12 January 18 January 24 January 28 January 9,000 1,500 2,200 4,700 Required: Compute the value of the inventory and gross profit at 31 January 2019: a. Using weighted average cost. (15marks) b. Using First in First Out (FIFO) method. (15 marks) Note: In arriving at the total inventory values you should make calculations to two decimal places where necessary) and deal with each inventory movement in date order