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Inventory valuation is used to calculate the cost of goods sold and cost of ending inventory. The most widely used methods are LIFO, FIFO and average cost method. You are required to find out the inventory system applied, the method of inventory valuation used, and what does inventory consists of with their respective amount?

Salalah Beach Resort SAOG Statement of changes in equity for the nine months ended on 30 September 2020 Share capital RO Special reserve RO Legal reserve RO Revaluation reserve RO Retained earnings! (accumulated losses) RO Total RO 6,250,000 39.800 793,132 2,116,647 (257,283) 8,942,296 (85,968) At 1 January 2019 Comprehensive incomel (loss): Loss for the period Other comprehensive income Total comprehensive income for the period Transfer to statutory reserve 255,000 255,000 (85,968) 255,000 169,032 (85,968) Transactions with Owners, recorded directly in equity: Dividend paid for 2017 At 30 September 2019 6,250,000 39,800 793.132 2,371,647 (343.251) 9.111,328 6,250,000 39,800 793,132 2,371,647 (366,677) 9,087,902 At 1 January 2020 Comprehensive incomel (loss): Loss for the period Other comprehensive income Total comprehensive loss for the period (560,230) (560,230) (560,230) (560,230) Transactions with Owners, recorded directly in equity: Dividend paid for 2018 At 30 September 2020 6,250,000 39,800 793,132 2,371,647 (926,907) 8,527,672 The accompanying notes form an integral part of these financial statements, Salalah Beach Resort SAOG Statement of Financial Position as at 30 September 2020 Notes 2020 RO 2019 RO ASSETS Non-current assets Property, plant and equipment 5 8,644,470 8,749,359 Current assets Inventories Trade and other receivables Cash and cash equivalents Total Current assets 6 7 9 2,685 102,988 736,179 841,852 29,736 215,866 1,423,016 1,668,618 Total assets 9,486,322 10,417,977 EQUITY AND LIABILITIES Capital and reserves Share capital Special reserve Statutory reserve Revaluation reserve Accumulated losses Total Equity 10 11 12 13 6,250,000 39,800 793,132 2,371,647 (926,907) 8,527,672 6,250,000 39,800 793,132 2,371,647 (343,251) 9,111,328 Non-current liabilities Deferred Tax Liability Staff Terminal Benefits Total non-current liabilities 21 d 19 428,941 87,166 516,107 529,581 68,722 598,303 Current liabilities Trade and other payables Staff Terminal Benefits Total current liabilities Total liabilities 14 19 437,542 5,001 442,543 958,650 610,070 98,276 708,346 1,306,649 Total equity and liabilities 9,486,322 10,417,977 Net assets per share 23 1.364 1.458 Salalah Beach Resort SAOG Statement of profit or loss and other Comprehensive income for the nine months ended on 30 September 2020 Notes 2020 RO 2019 RO Revenue from Operations Direct cost Gross profit/(loss) 15 16 515,180 (802,921) (287,741) 1,947,989 (1,385,146) 562,843 Administrative and general expenses Other (expenses) income - net Loss from Operations 17 18 (394,088) 11,406 (670,423) (670,372) (14,246) (121,775) 20 Finance income Loss before tax 12,792 (657,631) 23,687 (98,088) 21 Income tax Loss for the period 97,401 (560,230) 12,120 (85,968) Loss per share - basic and diluted 22 (0.090) (0.014) The accompanying notes form an integral part of these financial statements. Salalah Beach Resort SAOG Statement of changes in equity for the nine months ended on 30 September 2020 Share capital RO Special reserve RO Legal reserve RO Revaluation reserve RO Retained earnings! (accumulated losses) RO Total RO 6,250,000 39.800 793,132 2,116,647 (257,283) 8,942,296 (85,968) At 1 January 2019 Comprehensive incomel (loss): Loss for the period Other comprehensive income Total comprehensive income for the period Transfer to statutory reserve 255,000 255,000 (85,968) 255,000 169,032 (85,968) Transactions with Owners, recorded directly in equity: Dividend paid for 2017 At 30 September 2019 6,250,000 39,800 793.132 2,371,647 (343.251) 9.111,328 6,250,000 39,800 793,132 2,371,647 (366,677) 9,087,902 At 1 January 2020 Comprehensive incomel (loss): Loss for the period Other comprehensive income Total comprehensive loss for the period (560,230) (560,230) (560,230) (560,230) Transactions with Owners, recorded directly in equity: Dividend paid for 2018 At 30 September 2020 6,250,000 39,800 793,132 2,371,647 (926,907) 8,527,672 The accompanying notes form an integral part of these financial statements, Salalah Beach Resort SAOG Statement of Financial Position as at 30 September 2020 Notes 2020 RO 2019 RO ASSETS Non-current assets Property, plant and equipment 5 8,644,470 8,749,359 Current assets Inventories Trade and other receivables Cash and cash equivalents Total Current assets 6 7 9 2,685 102,988 736,179 841,852 29,736 215,866 1,423,016 1,668,618 Total assets 9,486,322 10,417,977 EQUITY AND LIABILITIES Capital and reserves Share capital Special reserve Statutory reserve Revaluation reserve Accumulated losses Total Equity 10 11 12 13 6,250,000 39,800 793,132 2,371,647 (926,907) 8,527,672 6,250,000 39,800 793,132 2,371,647 (343,251) 9,111,328 Non-current liabilities Deferred Tax Liability Staff Terminal Benefits Total non-current liabilities 21 d 19 428,941 87,166 516,107 529,581 68,722 598,303 Current liabilities Trade and other payables Staff Terminal Benefits Total current liabilities Total liabilities 14 19 437,542 5,001 442,543 958,650 610,070 98,276 708,346 1,306,649 Total equity and liabilities 9,486,322 10,417,977 Net assets per share 23 1.364 1.458 Salalah Beach Resort SAOG Statement of profit or loss and other Comprehensive income for the nine months ended on 30 September 2020 Notes 2020 RO 2019 RO Revenue from Operations Direct cost Gross profit/(loss) 15 16 515,180 (802,921) (287,741) 1,947,989 (1,385,146) 562,843 Administrative and general expenses Other (expenses) income - net Loss from Operations 17 18 (394,088) 11,406 (670,423) (670,372) (14,246) (121,775) 20 Finance income Loss before tax 12,792 (657,631) 23,687 (98,088) 21 Income tax Loss for the period 97,401 (560,230) 12,120 (85,968) Loss per share - basic and diluted 22 (0.090) (0.014) The accompanying notes form an integral part of these financial statements

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