Question

QUESTION 3

Table below shows the ending inventory of FS Bhd at cost and at LCNRV at 31 December 31 2017; 31 December 2018; and 31 December 2019.                             

	Costs (RM)	LCNRV (RM)
31 Dec 2017	325,000	325,000
31 Dec 2018	390,000	356,000
31 Dec 2019	452,500	415,000

REQUIRED:

1. Prepare the journal entries at 31 December 2018 and at 31 December 2019, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV is used.

b. Prepare the journal entries required at 31 December 2018 and at 31 December 2019, assuming that a perpetual inventory system and reduced to LCNRV using the loss method.

Answer 1