D: CASE STUDY 2 Maya Blink Sdn Bhd produces reusable face masks and maintains its stock using perpetual inventory control system. The highly demanded reusable face mask among the company’s regular customers is “Cotton Melody”, an adult size head loop face mask. The main direct material to make “Cotton Melody” is the stretch knit cotton fabric. Each unit of “Cotton Melody” uses 0.5 meters of stretch knit cotton fabric. The company keeps its inventory based on First in First Out (FIFO) method The balances of stretch knit cotton fabric in store on 31 December 2020 were 2,500 meters of fabric purchased on 27 December 2020 at RM4.00 per meter and 2,000 meters purchased on 18 December 2020 at RM3.50 per meter. The information regarding the movement of stretch knit cotton fabric for the month of January 2021 were as follows: Jan Transactions 2 Issued to production department to make 5,000 units of face masks 10 Purchased 5,200 meters of fabric at RM4.20 per meter 15 Purchased 2,500 meters of fabric at RM4.60 per meter 18 Issued to production department 3,000 meters of fabric 20 Return to supplier 800 meters of fabric purchased on 15 January 2021 due to colour defect items. 22 Issued to production department 4,500 meters of fabric 26 Purchased 2,000 units of fabric. The purchase price is RM5.00 per meter, before deducting a discount of 5% given by the supplier 31 The physical stock count revealed that 300 meters of fabric were defected Required: Prepare a store ledger card the month of January 2021 and show the closing stock in quantity and value.
D: CASE STUDY 2
Maya Blink Sdn Bhd produces reusable face masks and maintains its stock using perpetual inventory
The balances of stretch knit cotton fabric in store on 31 December 2020 were 2,500 meters of fabric purchased on 27 December 2020 at RM4.00 per meter and 2,000 meters purchased on 18 December 2020 at RM3.50 per meter. The information regarding the movement of stretch knit cotton fabric for the month of January 2021 were as follows:
|
Jan |
Transactions |
|
2 |
Issued to production department to make 5,000 units of face masks |
|
10 |
Purchased 5,200 meters of fabric at RM4.20 per meter |
|
15 |
Purchased 2,500 meters of fabric at RM4.60 per meter |
|
18 |
Issued to production department 3,000 meters of fabric |
|
20 |
Return to supplier 800 meters of fabric purchased on 15 January 2021 due to colour defect items. |
|
22 |
Issued to production department 4,500 meters of fabric |
|
26 |
Purchased 2,000 units of fabric. The purchase price is RM5.00 per meter, before deducting a discount of 5% given by the supplier |
|
31 |
The physical stock count revealed that 300 meters of fabric were defected |
Required:
Prepare a store ledger card the month of January 2021 and show the closing stock in quantity and value.
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