Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information has been extracted from the records of Mas Bhd. about one of its products LITTLE JOMBO. Mas Bhd. uses the perpetual
The following information has been extracted from the records of Mas Bhd. about one of its products "LITTLE JOMBO". Mas Bhd. uses the perpetual inventory system and its reporting period ends on 30 September. 2019 Detail Unit RM 01/10 Beginning balance 1.600 14.00 06/10 Purchased 600 14.10 05/11 Sold @ RM24.00 per unit 2.000 19/12 Purchased 2 200 14.70 24/12 Purchase returns 160 14.70 2020 10/01 Sold @ RM24.20 per unit 1.400 22/03 Purchased 16.800 15.00 30/04 Sold @ RM26.50 per unit 3.600 04/05 Sales returns @ RM26.50 per unit 40 04/06 Sold @ RM27.00 per unit 7.000 06/08 Purchased 1.000 16.00 27/09 Sold @ RM30.00 per unit 6 200 REQUIRED: a) b) Calculate the cost of inventory on hand at 30 September 2020 and the cost of sales for the year ends 30 September 2020, using: i. the FIFO cost method ii. the moving average cost method (round the average unit costs to the nearest cent, and round total cost amounts to the nearest dollar). Prepare the trading section of the statement of profit or loss and other comprehensive income for the year ended 30 September 2020, using: i. the FIFO cost method ii. the moving average cost method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer a Calculate the cost of inventory on hand at 30 September 2020 and the cost of sales for the year ends 30 September 2020 using i FIFO cost meth...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started