JM 2020

QUESTION 1

Tas Bhd is a small company producing handbags from snake skins. From the
following
information, you are required to prepare the cost statement for the month ending 31
July 2019:
RM
Snake skins 100,000
Coloured crystals 81,000
Rent for display room 2,000
Factory electricities 3,000
Machine repairs and maintenance 4,000
Production workers wages 120,000
Supervisors salaries 8,000
Office workers salaries 9,000
Marketing and sales staff wages and salaries 25,000
Royalty 30,000
Transportation expenses 3,000
Insurance on factory 7,000
Advertising expenses 5,600
Canteen expenses ( office workers) 3,400
[10 marks]

QUESTION 2

The Vase Manufacturer wishes to estimate the fixed and variable costs on their vase
delivery activity. The assistant accountant of the company has gathered the
following information:

Number of packages delivered Total Transportation Costs

(RM)
50 2,400
100 3,300
75 2,700
60 2,700
90 3,150
125 3,750

Required:
(a) Calculate the fixed and variable costs of the transportation costs for the vase .

(b) Calculate the total costs to deliver 70 packages of vase.

[5 Marks]

QUESTION 3

The following is a table of total costs at two different levels of activity.

Production/sales level
( units) 2,000 5,000

Total Costs
RM RM
Supervision 20,000 20,000
Direct Materials 100,00 250,000
0
Storage and handling 10,000 17,500
Direct Wages 90,000 225,000
Electricity 10,000 19,000
Rent 26,000 26,000
Salesmen’s salaries ( including 50, 65,0
commission) 000 00
Packaging 27,500 68,750
Distribution 30,000 52,500
Depreciation 40,000 40,000

Identify the Cost Behaviour for each cost above

[5 marks]

[TOTAL :20 MARKS]

JM 2019
QUESTION 1 (6 marks)

Explain the differences between Financial Accounting and Managerial Accounting in three
(3) different aspecst.
[6 marks]

QUESTION 2 (4 marks)

Classify the following items of overhead at a food manufacturing company in terms of:

Production overhead (A)

Administration overhead (B)
Selling overhead (C)
Distribution overhead (D)

Tick (√) the appropriate answer

No A B C D
1 Production manager’s salary
2 Repairs to machinery
3 Advertising
4 Delivery expenses
5 Repairs of Photostat machine
6 Repairs of delivery van
Electricity
Accountant’s salary
Raw material
Hire of special machinery

[ 4 marks]

QUESTION 3 (10 marks)

Adikku Sdn. Bhd. manufactures and sells children's clothes made from basic raw materials,
cotton and polyester. The costs involved in the business operation of Adikku Sdn. Bhd. for
the month ending 30 June 2018 were as follows:

RM
Raw material - cotton 15,200
Raw material - polyester 9,500
Wages of workers in Cutting Department 11,200
Royalty paid to designer 8,500
Wages of workers in Sewing Department 13,250
Wages of technicians 6,800
Factory supervisor's salary 1,600
Factory electricity and water expenses 4,200
Office rent 1,450
Director's salary 7,000
Factory cleaners wages 800
Depreciation of sewing machine 1,100
Indirect materials and consumables (60% factory, 40% office) 2,500
Advertising expenses 500
Interest on loans 1,000
Delivery van expenses 800

Required:
a) Prepare a Cost Statement showing clearly the prime cost, production
overhead expenses, total production cost, administration cost, selling and
distribution cost, and the total cost.
(10 marks)

QUESTION 4 (10 marks)

Othman Halim, controller of Sinar Usaha Sdn Bhd has decided to estimate the fixed and
variable components associated with the company’s set-up costs. He has collected the
following data for the past six months. Below are the data he has collected:

Month Set up cost Machine Hours

January RM8,700 800
February RM8,360 720
March RM8,950 810
April RM9,360 920
May RM9,625 950
June RM9,150 900

Using the high low method, calculate

a) variable cost per machine hours
b) fixed cost per month
c) the set up cost associated with 980 machine hours

[10 marks]

JS2017 (1)

Question 1
Awang Chik is a fishing guiding on the Pahang River. He has noted that the overall
fuel cost vary based on “kilometres upriver” and he is considering changing his guide
fee to charge customers for estimated fuel cost.
Below is Awang’s log for 8 typical days showing “kilometres upriver” and total fuel
cost”.

Day Kilometers Fuel Cost

Upriver (KM) (RM)
1 37 86
2 41 93
3 22 73
4 28 80
5 49 99
6 25 74
7 33 85
8 37 87

Required:
a) By using high-low method, determine the variable cost per kilometre and total
fixed cost.

(3 marks)

b) Calculate the total cost for Day 9 and 10 when the expected kilometres upriver
are 55 km and 51 km respectively.

(4 marks)

c) Awang Chik plan to move beyond 60 km in Day 11. He estimated that the total
fixed cost might increase to 25% if he fishes beyond 60 km. If the Variable cost is
expected to remain unchanged, estimate the total fuel cost if he fishes 65 km in
Day 11.

(3 marks)
(Total: 10 marks)

Question 2
Prepare a cost statement for the month of June for Perusahaan Wak Loodin using
the date given below:
 The Perusahaan Wak Loodin incurred the following costs for the month of
June:
RM
Direct materials 6,600
Indirect materials 1,200
Payroll costs incurred:
Direct labour 6,000
Indirect labour 1,700
Salaries:
Production manager 2,400
Office manager 5,100
Sales manager 3,200
Other costs:
Building rent (50% are factory rent) 1,400
Rent for blending machine 400
Royalty paid for the use of production patents 1,000
Electricity -factory 2,700
Insurance –admin 1,800
(10
marks)
(Total : 20 marks)

JS 2017 (2)
Question 1
Delicious Cake Sdn Bhd produces special cupcakes for their customer. The
manager is concern about the rise in the price of flour, and wishes to set a new stock
control levels. He has provided you with the following information for the year 2016.

Annual demand 480 000 cupcakes

Ordering cost RM 5 per order
Holding cost RM 1.50 per kg
Re-order period 2-6 days
Flour usage 50-100 kg

Calculate:

a) Economic Order Quantity (EOQ) using a formula ( 2 marks)

b) Re-order level ( 2 marks)
c) Minimum stock level ( 2 marks)
d) Maximum stock level ( 2 marks)
e) Average stock level ( 2 marks)

(Total: 10 marks)
Question 2

Bella Cucina is an online entrepreneur who specializes in making doughnuts. The

ingredients include a special mix flour costing RM3.00 per kg from a supplier in
Pontian. Total annual demand is 2,000 dozens of doughnuts. She incurs RM6.00 to
place an order and the holding cost is 20% from the average value.

Required:

a) Tabulate the relevant total costs if 100, 200, 300,400 and 500 kgs of the special
mix flour were ordered.
(7 marks)

b) Based on your answer in (a), determine the order size and economic order
quantity (EOQ) that minimizes the total cost.
(1 mark)
c) State two (2) advantages for having an efficient in controlling material in the
business.
( 2 marks)
(Total: 10 marks)
[TOTAL : 20 marks]