REQUIRED:

(a) Using FIFO, compute cost of closing inventory, sales and gross profit/loss as at 30 April 2020. (9MARKS)

(b) Using Weightage Average Cost method, compute cost of closing inventory, sales and gross profit/loss as at 30 April 2020. (8MARKS)

For (a) and (b), show relevant workings. 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.

(c) Explain the difference between perpetual inventory system and periodic system. Which one is more sophisticate? [3 marks]

SY Furniture is a manufacturer of garden furniture. The company has consistently used weighted average cost in valuing inventory, but it is interested to know the effect on its inventory valuation of using First In First Out method (FIFO). At 31 March, 2020 the company had inventory of 4,000 standard plastic tables, and has computed its value on each side of the two bases as: Unit Cost (RM Basis FIFO Weighted average Total Value (RM) 64,000 52,000 During April 2020 the movements on the inventory of tables were as follows: Date Number of unit Production: Production Cost per unit RM 15 8 April 22 April 3.800 6,000 Revenue: 12 April 18 April 24 April 28 April 5,000 2.000 3,000 2.000 Selling price/unit RM 15.40 13.00 15.00 18.00