Tritan Sdn. Bhd. is involved in supplying frozen lambs. The information given was for the month of May 2019. On 1 May, the company had a stock of 50 kg of lamb worth RM150. The following were transactions carried out by the company until 31 May 2019: Date Transaction Amount 2 May Sold 30 kg 5 May Purchased 60 kg @ RM160 15 May Purchased 80 kg @ RM195 22 May Sold 120 kg @ RM220 26 May Returned to supplier 5 kg 29 May Sold 30 kg Required: (a) Calculate the value of inventory using the first-in, first-out (FIFO) and weighted-average cost methods. (b) Prepare an extract of the Statement of Profit and Loss to determine the gross profit and discuss the differences between both methods towards the gross profit and inventory value.

Tritan Sdn. Bhd. is involved in supplying frozen lambs. The information given was for the month of May 2019. On 1 May, the company had a stock of 50 kg of lamb worth RM150. The following were transactions carried out by the company until 31 May 2019: Date Transaction Amount 2 May Sold 30 kg 5 May Purchased 60 kg @ RM160 15 May Purchased 80 kg @ RM195 22 May Sold 120 kg @ RM220 26 May Returned to supplier 5 kg 29 May Sold 30 kg Required: (a) Calculate the value of inventory using the first-in, first-out (FIFO) and weighted-average cost methods. (b) Prepare an extract of the Statement of Profit and Loss to determine the gross profit and discuss the differences between both methods towards the gross profit and inventory value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: accounting
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