Tasks $1$:

In order to expand your business, you need to acquire more capital. One of your friends is

interested to join your partnership business. Prepare the following information to convince the

new partner to join your business.

Background of the business

$($a$)$ Name of partnership business

$($b$)$ Location of the business

$($c$)$ Nature of the business

Budgeted production and sales:

$($a$)$ Determine the production cost of soy drink for each month in $2024.$

$($b$)$ Set the selling price of soy joy by using profit mark$-$up or profit margin.

$($c$)$ Discuss the following Inventory valuation:

iv$.$ FIFO

v$.$ LIFO

vi$.$ WAC

$(15$ marks$)$

$($d$)$ Prepare the inventory valuation sheet using the method that you think suitable for

your soy drink business $($FIFO$/$LIFO$/$WAC$).$

$(20$ marks$)$

$($e$)$ Explain to the partners on how to economically control the inventory by providing the

following Inventory control methods:

v$.$ Economic order quantity

vi$.$ Re$-$order level

vii. Maximum level

viii. Minimum level.

$($Show all the relevant workings as example in the discussions.$)$