ACC2043

1/2022
MANUFACTURING ACCOUNT

KOLEJ PROFESIONAL MARA

COURSE : FINANCIAL ACCOUNTING 3

COURSE CODE : ACC 2043
TYPE OF ASSESSMENT : ASSIGNMENT
ACADEMIC SESSION : 1/2022
COURSE LEARNING OUTCOME : Prepare the financial statements for manufacturer. (A4, PLO4)
WEEK OUT : WEEK 5
WEEK IN : WEEK 7

INSTRUCTIONS:

1. Form groups of 3 people. This task will be on group evaluation.

2. Prepare a report writing and a video of the presentation: 10 minutes

3. All members must take part in the presentation session.

4. You are free to use any application of presentation. (e.g.: Power Point, Loom, Graphic, Pow
toon etc.)

5. Upload the video on YouTube and share the link with your lectures.

6. Plagiarism is NOT acceptable, if found may result in a stiff penalty.

7. The submission of the report and video link is on 29th APRIL 2022 before 5pm

This question booklet consists of 11 printed pages

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KOLEJ PROFESIONAL MARA
ACC2043: FINANCIAL ACCOUNTING 3

ASSIGNMENT: MANUFACTURING ACCOUNT

Objectives:

The aim of this assignment is to enhance the understanding of students in Financial Accounting 3
focusing on the topic of Manufacturing Account. Students should be able to ascertain the
manufacturing costs of finished goods and transfer these costs to Statement of Profit and Loss as
well as Statement of Financial Position. The assignment also aims to promote translation of
accounting knowledge into a specific and meaningful experience, encourage students to be
independent and improve communication skills.

TASK A

SCENARIO BASED QUESTION

Manufacturing businesses are referring to business entities that engage in producing goods for sale
by converting raw materials into finished products. Ascertaining the cost of production is important
for manufacturers to serve maximum production at a minimum expense. For this purpose,
manufacturing businesses prepare a separate Manufacturing Account to calculate the total cost of
production as part of final accounts in addition to the Statement of Profit and Loss and the Statement
of Financial Position. Thus, in a manufacturing business, there are some important terms that need
to be understand when it comes to calculating the cost of production. For example, direct cost,
direct labour, direct expenses, and indirect cost.

As a small-scale manufacturing business in Malaysia, you and your team have come up with a great
product and want to produce the product. To turn this into reality, you and your team pitch the idea
to a group of investors and subsequently, they are willing to fund the business. Capital funded by
the investors is RM30,000. Beginning 1st February 2021, you and your team begin to produce this
new product. It is important for your team to determine the accurate cost of production for your
product in order to achieve the set profit margin. After operating for one month, the investors that
funded you and your team asked for a monthly financial report.

Therefore, you and your team are required to provide the following details in the report:

(i) The background of the company.

(ii) The information about the products manufactured including the detail of the related
costs of your product.
(iii) The costs involved in manufacturing the product by preparing Manufacturing Account
(at the end of February 2021).

(iv) The cost per unit and the selling price.

(v) Statement of Profit and Loss (at the end of February 2021).

(vi) Statement of Financial Position (at the end of February 2021).

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TASK B
ZIZ Sdn. Bhd is an old established company that stay active in producing and distributing its food
products in Kuantan, Pahang. The following are lists of balances for its accounts at 31 JAN 2022.
Debit Credit
(RM) (RM)
Inventory as at 1 Feb 2021:
Raw materials 12,450
Work in progress 10,330
Finished goods 17,110
Purchases of raw materials 332,795
Direct expenses 10,280
Return inwards 3,000
Rent 30,000
Electricity 33,200
Direct wages 487,240
Indirect wages 34,320
Internet and telephone charges 4,890
Bad debts 1,325
Factory repairs 12,215
Insurance 11,420
Office salaries 84,000
Commission on sales 57,435
Plant and machinery (at cost) 860,000
Accumulated depreciation – plant and 344,000
machinery
Furniture and equipment (at cost):
Factory 642,000
Office 48,000
Accum. Depreciation – furniture and
equipment
Factory 192,600
Office 9,600
Sales 1,921,560
Bank 475,000
Provision for unrealized profit 4,510
Capital as at 1 Feb 2021 901,240
Account receivables 296,500
Account payables 90,000
3,463,510 3,463,510

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Additional information:
1. Value of inventories as at 31 Jan 2022:

Raw materials RM 11,325

Work in progress RM 11,105
Finished goods RM 30,000

2. Finished goods are transferred from the factory at cost plus 20%.
3. Accruals as at 31 Jan 2022: :
- Direct wages RM 12,200
- Electricity RM 2,100
4. Prepayments at 31 Jan 2022::
- Rent RM 6,000
- Insurance RM 2,200
5. Apportionments are to be made as follows:
Factory Office
Rent 4/5 1/5
Insurance 3/4 1/4
Telephone and 1/3 2/3
internet
Electricity 3/4 1/4

6. At 31 Jan 2022:, depreciation is to be provided as follows:

- Plant and machinery 20% on cost
- Furniture and equipment 10% on cost

REQUIRED:
a) Prepare Manufacturing Account of ZIZ Sdn. Bhd for the year ended 31 Jan 2022:.

b) Prepare Statement of Profit and Loss and other Comprehensive Income of ZIZ Sdn. Bhd for
the year ended 31 Jan 2022:.

c) Prepare Statement of Financial Position of ZIZ Sdn. Bhd as at 31 Jan 2022:

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You are required to follow the steps to achieve 20% on your assignment marks:

1. REPORT WRITING REQUIREMENTS (TASK A)

 10% of overall project.

1.1 The final report on the project must be presented as follows:

 A maximum of 20 pages (excluded appendices)

 Font “Tahoma” size 11 at 1.25 spacing

1.2 The arrangement of the final report should be as follows:

 Acknowledgement
 Table of contents
 Introduction
 Solution of (i) to (vi)
 Conclusion
 Reference
 Appendices (including DOCUMENT A)

2. PRESENTATION

 5% of overall project.

2.1 Presentation Format

- Each group must present according to the arrangement of the final report
above.(task A only)
- Share your video’s link by 29th APRIL 2022

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3. TASK B

 Answer the question and include it in the report writing.

 5% of overall project.

Submission of report writing (task A and B) is by email. Please email your report to respective
lecturer not later by 29th APRIL 2022 before 5pm.

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RUBRIC:

FINANCIAL ACCOUNTING 3 (ACC 2043)

ASSIGNMENT: MANUFACTURING ACCOUNT

GROUP MEMBERS

1.

2.

3.
PART A – Submission Report (10 Marks)
Details Marks Marks
Provided Rewarded

1. Introduction
 General Information about Manufacturing
Account 2
 Purpose of Manufacturing Account
2. Background of the company
 Business Activities
 Vision and Mission 3
 Organizational Chart
3. Information about the product manufactured
 Name of the product
 Components of the product 2

4. Identification all the costs involved in manufacturing the

product.
 Cost of raw material (using correct formula) 3
 Direct Labour (2 examples of direct labour) 2
 Direct Expenses (2 examples of direct
2
expenses)
1
 Prime cost
5
 Indirect Cost (5 examples of indirect cost) 1
 Production cost 1
 Work in Progress 1
 Cost of Completed Goods 1
 Manufacturing profit 1
 Cost per unit 1
 Selling Price
5. Financial Accounts:

a) Statement of Profit and Loss

 Sales 1
 COGS 2
 Other Revenues (2 examples) 2
 Expenses (5 examples) 5
 Net Profit/Net Loss 1

b) Statement of Financial Position
 Non-Current Assets (including
depreciation) (2 examples)
2
 Current Assets (3 examples)
 Capital (RM20.000) 3
 Long Term Liabilities (1 example) 1
 Current Liabilities (2 examples) 1
2
6. Conclusion 1
1
7. References 2
8. Appendices – Document A

TASK B : ANSWER OF QUESTION GIVEN

(Refer answer scheme)

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TOTAL: A 50 50/50 x 10= 10
marks

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 PART A – Group Presentation (5 Marks)
VIDEO RUBRIC

Group Members:

Lecturer
Possible
Poor Satisfactory Good Very good Excellent Assessment
Points
1 2 3 4 5
Student Very interesting
Audience cannot Audience has presents where information is
Student presents organized
understand the difficulty following information in
information in systematically,
presentation the presentation logical,
Organization logical sequence accurately, 5
because there is because student interesting relevantly and
which audience
no sequence of jumps around. sequence which audience are well
can follow.
information. audience can addressed.
follow
Student Student
demonstrates demonstrates full
Student does not Student is Student is at
full knowledge knowledge (more
Content have grasp of uncomfortable with ease with the
with than required) with 5
Knowledge information about the information content but fails
explanations explanations and
subject. presented to elaborate.
and elaborations
elaborations
Visual aids are
The quality and The materials in The materials well used and
The materials in make the
materials in the the video are in the video are 5
the video are not presentation
Visuals video lacked some adequately very well
organized and more
organization and organized and organized and interesting and
lack clarity.
somewhat clear. somewhat clear. understandable meaningful

All members
The majority of All members demonstrate an
Only one person Half of the group
the members demonstrate an active role in the
Participation demonstrated an did most of the 5
demonstrate an active role in process and
active role. work
active role. the process. motivate each
other’s
Few of the All group members
Only one or Most of the
group are very fluent
None of the two of the group
members are and voices are easy
group group members are
slightly to
members is members fluent and
Delivery fluent and be heard clearly 5
fluent and is/are fluent voices are
voices are
voice is not and voice is slightly easy
quite difficult
clear slightly to be heard
to be heard
clear clearly
clearly
25m

Total = 25/5 =5 marks

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ASSESSMENTS:

NO ITEMS ASSESSED SCORE %

1 Submission of Report (Part A) 50 10

2 Group Presentation (Part A) 25 5

3 Submission of Report (Part B) 25 5

TOTAL MARKS 100 20

WEIGHTAGE 20%

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 DOCUMENT A

NAME: CLASS:

ID NO: GROUP NAME:

INDIVIDUAL REFLECTION
At least 3 entries:
One Problem faced, One Comment and One Suggestions

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