PROBLEMS FOR GROUP 5 1. Prepare the Inventory records.

DATE	PARTICULARS	PRICE PER UNIT
1.01.2021	Balance in inventory was 500 bags of rice	OMR 2.200 per bag
3.01.2021	Purchased 600 bags of rice	OMR 2.450 per bag
5.01.2021	Purchased 320 bags of rice	OMR 2.350 per bag
9.01.2021	Sold 660 bags of rice
12.01.2021	Purchased 200 bags of rice	OMR 2.150 per bag
22.01.2021	Sold 520 bags of rice
23.01.2021	Purchased 350 bags of rice	OMR 2.550 per bag
24.01.2021	Sold 500 bags of rice

Required: Prepare the inventory records using the Last-In-First-Out method 2. Yousef & Company purchased, on 1st January 2020, a machine for producing cranes. The machine cost OMR 108,000 and was estimated to have a ten-year life with a residual value of OMR 8,000. The company plans on using one out of the two most important methods of deprecation which are straight line & Written down value methods. The CEO wants to decide on which method based on a few calculations that he asks you to perform which are given below. Prepare the required calculations to help the CEO arrive at a final decision. Required (a) Prepare a table of depreciation and net book values over the ten-years using straight-line depreciation. (b) Prepare a table of depreciation and net book value over the ten years using reducing-balance depreciation. (c) Using the straight-line method of depreciation, show the effect of selling the asset at the end of Year 4 for a price of OMR 75,000. (d) Using the reducing balance method of depreciation, demonstrate the effect on disposing the asset at the end of Year 5 for OMR 44,000.