UNIVERSITI TEKNOLOGI MARA

COST AND MANAGEMENT ACCOUNTING - ACC416

SEMESTER OCTOBER 2022 – FEBRUARY 2023
TUTORIAL 2A - MATERIALS (Stock Valuation)
1. JULY 2021

Celcia is new premium coffee brand made by a local company in Malaysia.

Currently, the company manufacture and sale Celcia in number of bottles.
The company normally gets the supply of coffee beans from Indonesia. The
company uses 250 grams of coffee beans to produce one bottle of Celcia. At
the end of March 2021, only 200 kg of coffee beans valued at RM1,500 was
available in the warehouse.

Below are the details of coffee beans purchased in April 2021.

Date (April) Total Kilogram

(RM)
3 5,390 700
7 6,800 850
13 7,755 940
21 7,310 860

On the 15 April 2021, 200 kilograms of coffee beans were returned to

supplier due to sales order error. The return relates to the batch purchased
on 13 April 2021. The transactions relating to the production of Celcia are
shown below:

Date (April) Quantity Produced

(bottles)
6 2400
9 3000
17 3200
28 3600

Physical stocktaking done as at 30 April 2021 showed there was only 280
kilograms of coffee beans available in store.

Required:

a. Prepare a store ledger card for the month of April 2021 of coffee beans
(in kilogram) using First In First Out (FIFO) method. Clearly show the
computation of closing stock inventory balance.
b. Calculate the total of net purchase for the month of April 2021.
2. JULY 2020

Idaman Enterprise is producing Crispy Seaweed in Kota Samarinda.

Seaweed is one of the main ingredients in making the products.
Idaman Enterprise uses 0.5 kilogram of seaweed to produce one small
container of Crispy Seaweed which is currently sold for RM25.00 per
container. The company practices First In Fist Out (FIFO) in managing
their stock movement. The following were the transactions that took
place in the month of May 2020.

May Transactions
Purchases Produces
3 400 kilograms at RM8.30 per kg before
deducting RM0.30 per kilogram for discount.
7 - 600
containers
9 - 400
containers
22 400 kilograms at RM7.00 per kilogram
25 - 600
containers
28 200 kilograms at RM6.50 per kilogram

Additional information:

1. Balance from the previous month of 200 kilograms worth RM1,500.

2. On 23 May 2020, the business returned to supplier 5 kilograms of

seaweed purchased on 22 May 2020 due to low quality.

3. On 29 May 2020, there was 15 kilograms of seaweed have gone bad

and unusable, thus it was thrown off.

4. Physical stock counts showed a balance of 370 kilograms were in the

store on 31 May 2020.

Required:

i. Prepare the Store Ledger Card for the month of May 2020 by showing
the closing stock value show as at 31 May 2020. (All calculations are to
be stated to 2 decimal places).

ii. Compute the new cost per kilogram for opening balance of June 2020 if
Idaman Enterprise decides to change its stock pricing method to
weighted average method.
3 . JUNE 2018 (QUESTION 2A)

Eva Foam is a very environmentally friendly material used to produce

shoes. The main producers of Eva Foam are located in China. In
Malaysia, one of the distributors of Eva Foam is Yuwen Sdn Bhd. The
company is located in Selangor and has been operating since 2010. The
information regarding the movement of inventories for the month of May
2018 are as follows:

May Transactio
ns
1 Opening inventories of 4,500 units at RM5.50 per unit
3 Sold 1,800 units at RM12.00 per unit
5 Purchased 2,300 units at RM5.80 per unit
7 Purchased 1,800 units at RM5.90 per unit
9 Sold 5,700 units at RM12.00 per unit
10 Purchased 1,700 units at RM6.00 per unit
13 Returned 200 units of damaged goods purchased on 10 May 2018 to
the supplier.
18 Sold 2,100 units at RM12.00 per unit
21 Purchased 2,000 units at RM6.10 per unit
25 Sold 1,300 units at RM12.00 per unit
28 Purchased 2,500 units at RM6.20 per unit
30 Sold 500 units at RM12.00 per unit
31 Physical stock take showed a balance of 3,000 units

Required:

Prepare the store ledger card using Weightage Average Method and
show the value of the closing inventories for Eva Foam. (All calculations
are to be stated to two (2) decimal places).