Miracle Skin Solution Bhd (MSSB) is a skin care company. It was established in 2017. The company currently produces acne serum. The company has its own outlet that solely sells its own product. Apart from that, in order to boost its sales, MSSB also signs consignment contract with RG Pharmacy to sell the acne serum in the pharmacy. The accounting period of MSSB ends on 31 December. MSSB uses First-In First-Out (FIFO) method to record the inventory cost flow and applies the perpetual inventory system to record the inventory. Following is the inventory-in and inventory-out inventory record in regards to MBBS's finished goods inventory for the year.
Miracle Skin Solution Bhd (MSSB) is a skin care company. It was established in 2017. The company currently produces acne serum. The company has its own outlet that solely sells its own product. Apart from that, in order to boost its sales, MSSB also signs consignment contract with RG Pharmacy to sell the acne serum in the pharmacy. The accounting period of MSSB ends on 31 December. MSSB uses First-In First-Out (FIFO) method to record the inventory cost flow and applies the perpetual inventory system to record the inventory. Following is the inventory-in and inventory-out inventory record in regards to MBBS's finished goods inventory for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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VIEWStep 2: (a) Determine the cost of sales and the cost of inventory on hand for the year ended 31 Dec 2018:
VIEWStep 3: (b) Determine the MSSB’s ending inventory of acne serum as at 31 December 2018:
VIEWStep 4: (c) Prepare the Current Asset section of Statement of Financial Position (a partial) of MSSB:
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