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Tumit & Co. has been selling shoes for 10 years. During the year the demand for their shoes fluctuated depending on the fashion trends in

Tumit & Co. has been selling shoes for 10 years. During the year the demand for their shoes fluctuated depending on the fashion trends in the market. The following are their three products currently in the market at the end of the year.

Product Kasut Selipar Sandal
Carrying value RM 20,000 RM 18,000 RM 17,000
Units 700 1500 1000
Estimated selling price RM 35 RM 12 RM 20
Units damaged 50 200 170
Cost to repair RM 7 RM 2 RM 4
Commission to Kaki& Co. RM 2 RM 1 RM 1

Tumit had appointed Kaki Co. to sell their products with a certain commission rate. Prior to that, Tumit had ensure all damaged goods were repaired before sending to Kaki Co.

Required: (a) Briefly explain how Tumit & Co. able to measure their inventories. (b) Determine the net realisable value of Kasut, Selipar and Sandal. (c) Determine the cost of inventory at the end of the financial year. (d) Identify the relevant standard to the above scenario and justify your answer.

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