Analysis of Annual Report of HupSeng

Analysis of Annual Report of HupSeng
1) Inventory Accounts Balances
Inventory cost entails the value of the material or repair that the business organization holds with the main aim of repair or resale. The inventory value is usually illustrated as part of the current assets. The Group inventory value for the year 2013 is RM 20,817,932. The Group inventory value for the years 2012 is RM 20,586,831. The 2012 and the 2013 inventory value for the company is zero. This illustrates that there are no materials which are left for either resale of repair. The inventory value written off for the 2013 value is RM 17,851; while the value for 2012 is RM 62,432. The inventories are indicated at a value lower than net realizable value and also the cost (Hansen 124). The costs that were used in realizing the inventory value are three. The costs of raw materials are illustrated through the purchase value according to first-in first-out approach. The costs of finished goods are illustrated by the manufacturing expenses. The work in progress is valued through the costs of labor (Baxendale 45).
2) Individual Product Cost
Individual product cost illustrates a management accounting approach. This is especially in the operational context. The individual product costing aims at determining the cost of one production unit, through analyzing the value of all the resources applied in the development of the product (Jackson 26). The costing approach tries to determine the final cost that integrates all the applicable streams. There is no individual product cost illustrated in the analyzed financial data. This is because the financial statements of the Group and Company illustrate general 2012 and 2013 operation activities and cash flows (Smith 16). This information can only be obtained in the production account of the Group and Company. This is because the production illustrates the activities and values involved in the production of one product unit (Malakooti 76).

Bibliography
Baxendale, Sidney. (2011). “Activity-based Costing for the Small Business: A Primer.” Business Horizons.
Hansen, Don. (2005). Management Accounting. Thomson SouthWestern.
Jackson, Steve. (2006). Managerial Accounting: A Focus on Decision Making. Thomson South- Western.
Malakooti, Behnam. (2013). Operations and Production Systems with Multiple Objectives. John Wiley & Sons.
Smith, Richard. (2010). Entrepreneurial Finance. John Wiley.