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Miracle Skin Solution Bhd (MSSB) is a skin care company. It was established in 2017. The company currently produces acne serum. The company has its own outlet that solely sells its own product. Apart from that, in order to boost its sales, MSSB also signs consignment contract with RG Pharmacy to sell the acne serum in the pharmacy. The accounting period of MSSB ends on 31 December. MSSB uses First-In First-Out (FIFO) method to record the inventory cost flow and applies the perpetual inventory system to record the inventory. Following is the inventory-in and inventory-out inventory record in regards to MBBS's finished goods inventory for the year.

Miracle Skin Solution Bhd (MSSB) is a skin care company. It was established in 2017. The company currently produces acne serum. The company has its own outlet that solely sells its own product. Apart from that, in order to boost its sales, MSSB also signs consignment contract with RG Pharmacy to sell the acne serum in the pharmacy. The accounting period of MSSB ends on 31 December. MSSB uses First-In First-Out (FIFO) method to record the inventory cost flow and applies the perpetual inventory system to record the inventory. Following is the inventory-in and inventory-out inventory record in regards to MBBS's finished goods inventory for the year.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 5P
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REQUIRED: Miracle Skin Solution Bhd (MSSB) is a skin care company. It was established in 2017. The company currently produces acne serum. The company has its own outlet that solely sells its own product. Apart from that, in order to boost its sales, MSSB also signs consignment contract with RG Pharmacy to sell the acne serum in the pharmacy. A. (a) Determine the cost of sales for the year ended 31 December 2018 and the cost of inventory on hand as at 31 December 2018 of acne serum for MSSB without taking into consideration the additional information number (1), (2) and (3). Please use the below table format. The accounting period of MSSB ends on 31 December. MSSB uses First-In First-Out (FIFO) method to record the inventory cost flow and applies the perpetual inventory system to record the inventory. Following is the inventory-in and inventory-out inventory record in regards to MBBS's finished goods inventory for the year. Date Inventory-in | Inventory-out Balance Product: Acne Serum (b) Based on the calculation in (a) and taken into consideration the additional information number (2) and (3), determine the MSSB's ending inventory of acne serum as at 31 December 2018. Cost Selling Price Date Particular Unit RM/Unit RM/Unit 01/01/18 Beginning balance 114,000 50.00 06/03/18 Inventory-in 21,500 52.00 Prepare the Current Asset section of Statement of Financial Position (a partial) of MSSB as at 31 December 2018. (c) 10/07/18 Inventory-out 18/09/18 Inventory-in 25/10/18 Inventory-in 30/11/18 Inventory-out 58,000 60.00 25,000 51.00 11,000 53.00 69,000 65.00 Halim is a new account clerk in Damai Murni Sdn Bhd. During a discussion between Halim and his officer, he was informed that Damai Murni Sdn Bhd updated its inventory account at year end. Due to the budget constraint, the company uses manual record instead of accounting software to record its inventory. В. (Inventory-in = The transfer of finished inventory from the factory into the MSSB's record of inventory available for sale) (Inventory-out = The sales of the finished inventory to customers) Additional information: REQUIRED: 1. As at 31 December 2018 record shows that the cost of the ending inventory for raw materials and work-in-process are RM300,000 and RM150,000 respectively. 2. As at 31 December 2018 record shows that the unsold inventory of acne serum hold by RG Pharmacy is RM14,000. The consignment activity is recorded separately and is not included in the inventory-in and inventory-out inventory record. 3. On 1 December 2018, MSSB posted a pack of acne serum worth RM11,000 to a customer in Brunei. The shipment was signed under F.O.B Shipping Point and the Identify the inventory recording system being used by Damai Murni Sdn Bhd. transportation cost is RM250. The account clerk had not included this sale into the inventory-in and inventory-out inventory record.
Transcribed Image Text:REQUIRED: Miracle Skin Solution Bhd (MSSB) is a skin care company. It was established in 2017. The company currently produces acne serum. The company has its own outlet that solely sells its own product. Apart from that, in order to boost its sales, MSSB also signs consignment contract with RG Pharmacy to sell the acne serum in the pharmacy. A. (a) Determine the cost of sales for the year ended 31 December 2018 and the cost of inventory on hand as at 31 December 2018 of acne serum for MSSB without taking into consideration the additional information number (1), (2) and (3). Please use the below table format. The accounting period of MSSB ends on 31 December. MSSB uses First-In First-Out (FIFO) method to record the inventory cost flow and applies the perpetual inventory system to record the inventory. Following is the inventory-in and inventory-out inventory record in regards to MBBS's finished goods inventory for the year. Date Inventory-in | Inventory-out Balance Product: Acne Serum (b) Based on the calculation in (a) and taken into consideration the additional information number (2) and (3), determine the MSSB's ending inventory of acne serum as at 31 December 2018. Cost Selling Price Date Particular Unit RM/Unit RM/Unit 01/01/18 Beginning balance 114,000 50.00 06/03/18 Inventory-in 21,500 52.00 Prepare the Current Asset section of Statement of Financial Position (a partial) of MSSB as at 31 December 2018. (c) 10/07/18 Inventory-out 18/09/18 Inventory-in 25/10/18 Inventory-in 30/11/18 Inventory-out 58,000 60.00 25,000 51.00 11,000 53.00 69,000 65.00 Halim is a new account clerk in Damai Murni Sdn Bhd. During a discussion between Halim and his officer, he was informed that Damai Murni Sdn Bhd updated its inventory account at year end. Due to the budget constraint, the company uses manual record instead of accounting software to record its inventory. В. (Inventory-in = The transfer of finished inventory from the factory into the MSSB's record of inventory available for sale) (Inventory-out = The sales of the finished inventory to customers) Additional information: REQUIRED: 1. As at 31 December 2018 record shows that the cost of the ending inventory for raw materials and work-in-process are RM300,000 and RM150,000 respectively. 2. As at 31 December 2018 record shows that the unsold inventory of acne serum hold by RG Pharmacy is RM14,000. The consignment activity is recorded separately and is not included in the inventory-in and inventory-out inventory record. 3. On 1 December 2018, MSSB posted a pack of acne serum worth RM11,000 to a customer in Brunei. The shipment was signed under F.O.B Shipping Point and the Identify the inventory recording system being used by Damai Murni Sdn Bhd. transportation cost is RM250. The account clerk had not included this sale into the inventory-in and inventory-out inventory record.
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