Henh Huat Sdn Bhd, a trading company, had 1,000 units of an electrical component in its...

 

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Henh Huat Sdn Bhd, a trading company, had 1,000 units of an electrical component in its stores at 1 January 2023. These were valued at a cost price of RM40 per unit. The stores records revealed the following purchases of the electrical component during January 2023: Date January 1 January 6 January 14 January 21 January 27 Units 2,000 2,000 3,000 1,000 2,000 Unit Price RM41.50 RM42.00 RM43.00 RM44.00 RM46.50 83,000 84,000 129,000 44,000 93,000 a. first in first out' (FIFO). b. 'last in first out' (LIFO). RM During January, Heng Huat sold 8,000 units of the electrical component at RM100 per unit. Using the above data, apply the cost formulas as per MFRS102 to show the impact of each of the following methods on the gross profit of the company for January 2023: (9 marks) (9 marks) c. 'weighted average cost' (WA). (12 marks) d. Explain the impact to the gross profit when the aforesaid methods are applied. (10 marks) Henh Huat Sdn Bhd, a trading company, had 1,000 units of an electrical component in its stores at 1 January 2023. These were valued at a cost price of RM40 per unit. The stores records revealed the following purchases of the electrical component during January 2023: Date January 1 January 6 January 14 January 21 January 27 Units 2,000 2,000 3,000 1,000 2,000 Unit Price RM41.50 RM42.00 RM43.00 RM44.00 RM46.50 83,000 84,000 129,000 44,000 93,000 a. first in first out' (FIFO). b. 'last in first out' (LIFO). RM During January, Heng Huat sold 8,000 units of the electrical component at RM100 per unit. Using the above data, apply the cost formulas as per MFRS102 to show the impact of each of the following methods on the gross profit of the company for January 2023: (9 marks) (9 marks) c. 'weighted average cost' (WA). (12 marks) d. Explain the impact to the gross profit when the aforesaid methods are applied. (10 marks)

Answer rating: 100% (QA)

a Stores ledger card FIFO Date Purchases Sales Balance Units Price RM Units Price RM Units Price RM 2023 January 1 1000 40 40000 1 1000 40 40000 1000 40 40000 NIL NIL 1 2000 4150 83000 ... View the full answer