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    A191 Tutorial 5

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    syazwani matsaad
    This document provides information for Tutorial 5, which is due on December 8, 2019. It includes 10 multiple choice questions covering topics like managerial accounting, manufacturing costs, and inventory accounts. It also includes one structured question asking the student to calculate direct materials used, manufacturing overhead, cost of goods manufactured, and profit or loss, given information provided for a company called Business XYZ Trading.

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    © All Rights Reserved
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    A191 Tutorial 5

    Uploaded by

    syazwani matsaad
    541 views7 pages
    This document provides information for Tutorial 5, which is due on December 8, 2019. It includes 10 multiple choice questions covering topics like managerial accounting, manufacturing costs, and inventory accounts. It also includes one structured question asking the student to calculate direct materials used, manufacturing overhead, cost of goods manufactured, and profit or loss, given information provided for a company called Business XYZ Trading.

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    Q&A Tutorial 5

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    This document provides information for Tutorial 5, which is due on December 8, 2019. It includes 10 multiple choice questions covering topics like managerial accounting, manufacturing costs, and inventory accounts. It also includes one structured question asking the student to calculate direct materials used, manufacturing overhead, cost of goods manufactured, and profit or loss, given information provided for a company called Business XYZ Trading.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    541 views7 pages

    A191 Tutorial 5

    Uploaded by

    syazwani matsaad
    This document provides information for Tutorial 5, which is due on December 8, 2019. It includes 10 multiple choice questions covering topics like managerial accounting, manufacturing costs, and inventory accounts. It also includes one structured question asking the student to calculate direct materials used, manufacturing overhead, cost of goods manufactured, and profit or loss, given information provided for a company called Business XYZ Trading.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    BKAL1013 A181 TUTORIAL 5

    TUTORIAL 5

    DUE DATE: 8 DECEMBER 2019

    PART A: 10 MULTIPLE CHOICE QUESTIONS

    1. Managerial accounting information:


    A. Is used mainly by external users.
    B. Involves gathering information about costs for planning and control decisions.
    C. Is generally the only accounting information available to shareholders.
    D. Can be used for control purposes but not for planning purposes

    2. The three main categories of manufacturing cost are:


    A. Direct material cost, direct labour and factory overhead cost.
    B. Direct labor, indirect labor and overtime premiums
    C. Raw materials, work in progress and finished goods
    D. Raw materials, direct labour and finished goods

    3. The goal of managerial accounting is to provide the information that managers need for
    all of the following Except:
    A. Planning
    B. Control
    C. Decision making
    D. Review

    4. Which of the following gives the three types of inventory accounts for a manufacturing
    business.
    A. Finished goods and Work in process
    B. Raw materials & Product
    C. Finished goods, Work in progress & Raw materials
    D. Finished goods, Work in progress, Raw materials & Product.

    5. Which of the following items appears only in a manufacturing company's financial statements?
    A. Cost of goods sold.
    B. Cost of goods manufactured.
    C. Goods available for sale.
    D. Gross profit.
    BKAL1013 A181 TUTORIAL 5

    6. Costs that are incurred as part of the manufacturing process but are not clearly associated with
    specific units of product or batches of production, including all manufacturing costs other than
    direct material and direct labor costs, are called:
    A. Administrative expenses.
    B. Nonmanufacturing costs.
    C. Sunk costs.
    D. Factory overhead.

    Use the following information about Amy Company as follows for questions 7:
    RM

    Beginning raw materials inventory 15,200


    Beginning goods in process inventory 22,400
    Ending raw materials inventory 16,600
    Ending goods in process inventory 28,000
    Direct labor 42,800
    Total factory overhead 30,000
    Raw material purchases 60,000

    7. All raw materials used were traceable to specific batches of product. Amy Company's cost of
    goods manufactured for the year is:
    A. RM125,800.
    B. RM128,600.
    C. RM131,400.
    D. RM137,000.

    Use the following information for Questions 8 to 10:


    In July, Econo Sdn Bhd purchased direct materials costing RM42, 000 and incurred direct labor
    cost of RM36,000. Overhead totaled RM64,000 for the month. Information on inventories are as
    follows:
    1 July 31 July
    Direct materials RM12,400 RM14,200
    Work in process RM1,400 RM2,400
    Finished goods RM6,600 RM5,400

    8. What is the cost of direct materials used in July?


    A. RM42,000
    B. RM40,200
    C. RM43,800
    D. RM41,000
    BKAL1013 A181 TUTORIAL 5

    9. What is the conversion cost in July?


    A. RM100,000
    B. RM78,000
    C. RM106,000
    D. RM142,000

    10. What are the total manufacturing costs in July?


    A. RM142,000
    B. RM100,000
    C. RM138,200
    D. RM140,200
    BKAL1013 A181 TUTORIAL 5

    PART B :STRUCTURED QUESTIONS

    QUESTION ONE
    Business XYZ Trading provide the following information from the period ended 31 December
    2019
    RM
    Raw materials, 1 January 2019 35,000
    Work in process, 1 January 2019 13,000
    Finished goods, 1 January 2019 29,000
    Raw materials purchases 180,000
    Direct labour 288,000
    Insurance expenses 167,000
    Indirect labour 55,000
    Factory machine depreciation 180,000
    Utilities 50,000
    Selling and administrative expenses 135,000
    Sales 1,000,000

    At the end of period, the balance of inventories are as follows:


    Raw materials 64,000
    Work in process 42,000
    Finished goods 33,000

    The following cost are divided as follows:


    Factory building Administration

    Insurance Expenses 35% 65%

    Utilities expenses 70% 30%

    Calculate the followings:


    a. Direct materials used
    b. Manufacturing overhead
    c. Prepare statement of cost of manufacturing and state the cost of goods manufactured
    d. Prepare statement of profit or loss and other comprehensive income.

    END OF QUESTIONS
    BKAL1013 A181 TUTORIAL 5

    TUTORIAL 5 ANSWER SHEET

    DUE DATE: 8 DECEMBER 2019

    Group: _______

    Matric No: __________ Name: __________________________________________

    PART A: 10 MULTIPLE CHOICE QUESTIONS

    1. B

    2. A

    3. D

    4. C

    5. B

    6. A

    7. A

    8. B

    9. A

    10. A
    BKAL1013 A181 TUTORIAL 5

    PART B :STRUCTURED QUESTION

    a. Direct materials used

    Beginning raw material inventory = 35,000


    Raw materials purchases (+) = 180,000
    = 215,000
    Ending raw inventory (-) = 64,000
    Direct material used = 151,000

    b. Manufacturing overhead

    Insurance expenses = 167,000


    Indirect labor = 55,000
    Factory machine depreciation = 180,000
    Utilities = 50,000
    = 452,000

    Statement of Cost of Manufacturing

    Direct material:
    Beginning raw material inventory = 35,000
    Raw materials purchases (+) = 180,000
    = 215,000
    Ending raw inventory (-) = 64,000
    Direct material used = 151,000

    Direct labor = 288,000

    Factory overhead:
    Insurance expenses = 167,000
    Indirect labor = 55,000
    Factory machine depreciation = 180,000
    Utilities = 50,000
    = 452,000

    Total current manufacturing cost = 891000

    (+) opening work in progress = 13,000


    (-) closing work in progress = 42,000
    BKAL1013 A181 TUTORIAL 5

    Total cost of goods manufactured = 862000

    c. Prepare statement of comprehensive income statement

    Statement of Comprehensive Income

    Sale: 3,000,000

    COGS :

    Opening FG : 40,000
    (+) COGM : 1, 7404,400
    (-) Closing : (32,000) 1,748,400
    GROSS PROFIT: 1,251,600
    Insurance: (70%) : 89,600
    Utilities : 48,000
    Sell and Admin. Ex. : 285,000 422,600
    NET PROFIT : 829,000

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