ANSWER SHEET JULY 2020

Question 1
(a) Identify the classification for the following costs by function (production cost,
selling and
distribution overhead, administration overhead or research and development
overhead)
i. Production cost
ii. Selling & distribution overhead
iii. Administration overhead
iv. Administration overhead
v. Research and development overhead
vi. Production cost
vii. Selling and distribution overhead
viii. Administrative overhead
ix. Production cost
x. Research and development overhead

Question 1(b)
i. Calculate the total operating cost for the second quarter of the year 2020.
Business license 2400/12 = 200 x 3 months = RM600
Tutor’s salary per staff 1200 x 4 tutors x 3 months = RM14,400
Rental of shop lot 30,000/12 x 3 months = RM7,500
Advertising expenses 200 x 3 months = RM600
Utilities 300 x 3 months = RM900
Depreciation of furniture 3000/12 x 3 months = RM750
Stationeries expenses 250 x 3 months = RM750

Total operating cost = RM25,500

ii. Determine the total profit for the second quarter of 2020.
Tuition fees 146 students x Rm70 x 3 months = RM30,660

Total profit
Tuition fees – operating cost
RM30,660 – RM25,500 = RM5,160

Question 2
(a) i. Prepare the Store Ledger Card for the month of May 2020 by showing the closing
stock value show as at 31 May 2020. (All calculations are to be stated to 2 decimal
places).
 Date Receive Issues Balance
1-May 200 7.50 1500
3-May 400 8.00 3200 200 7.50 1500
400 8.00 3200
7-May 200 7.50 1500 300 8.00 2400
100 8.00 800
9-May 200 8.00 1600 100 8.00 800
22-May 400 7.00 2800 100 8.00 800
400 7.00 2800
23-May 5 7.00 35 100 8.00 800
395 7.00 2765
25-May 100 8.00 800 195 7.00 1365
200 7.00 1400
28-May 200 6.50 1300 195 7.00 1365
200 6.50 1300
29-May 15 7.00 105 180 7.00 1260
200 6.50 1300
31-May 10 7.00 70 170 7.00 1190
(loss) 200 6.50 1300
370 2490

ii. Compute the new cost per kilogram for opening balance of June 2020 if Idaman
Enterprise decides to change its stock pricing method to weighted average method.
RM2490/370units RM6.7
= 3

(b)i. Calculate the Economic Order Quantity (EOQ) of the shrimp paste using the
formula method.
. EOQ = √(2COD / CS)
=√2x(320,000x0.04kg) x (RM 40 x RM 10)
RM 0.20 x 0.10
=√2 x 12,800 x 40
0.02
= RM 160,000
ii. Calculate the total cost (carrying and ordering cost) if Kerawit Maju Sdn Bhd were
to order the shrimp paste at EOQ.

EOQ x CPU
2

160,000 x 0.02/kg = = RM 1,600

2
Question 3
a. Compute the gross wages for each worker for the month of April 2020.

Employers Sarah Reen Ameera

Basic pay RM 11 x 158hours RM 11 x 160hrs (3,400u/200) = 17u

= RM 1,738 = RM 1,760 17 x RM 80
= RM 1,360

Overtime 180hrs – 160 hrs

hours = 20hrs
N/A N/A
Overtime pay 20hrs x 1.25 x RM 11
=RM 275

Bonus Pay Time allowed = 165 Time allowed = 240 Time allowed = 170
Time taken = 158 Time taken = 180 Time taken = 170
Time saved = 7 Time saved = 60 Time saveds = 0

7hrs x (50% x 10) 60hrs x (50% x 10) N/A

= RM 35 = RM 300

Guaranteed N/A N/A RM1,500

minimum

Gross Wages RM 1,738 + RM35 RM 1,760 + RM275 + RM 1,500

=RM 1,773 RM 300
=RM 2,335

b. State the direct labour for the following business:

I. Cashier
II. Hairdresser
III. Cleaner
IV. Pilot
 Question 4
a. Prepare an overhead analysis sheet for the company to show the allocation,
apportionment, and reapportionment. (Answer are to be rounded up to the nearest
RM)

OVERHEAD BASIS TOTAL MIXING FINISHING PACKAGING STORE MAINTENANCE

(RM) (RM) (RM) (RM) (RM)
INDIRECT
MATERIAL Alloacted 145,000 65,000 25,000 34,000 7,000 14,000
DEPRECIATE OF
BUILDING Floor area 55,000 13,200 11,000 16,500 9,900 4,400
DEPRECIATE OF
PLANT Value plant 75,000 22,500 45,000 7,500 - -
LIGHTING Floor area 54,000 12,960 10,800 16,200 9,720 4,320

SUPERVISION No of employee 30,000 7,500 6,000 12,000 15,000 3,000

TOTAL
OVERHEAD 121,16
COST 0 97,800 86,200 28,120 25,720
RE-APPORTION
STORE No material -
requis 11,248 8,436 7,030 28,120 1,406
MAINTENANCE -
Maintennace hr 10,850 9,494 6,782 - 27,126
TOTAL
BUDGETED 143,25
OVERHEAD 8 115,730 100,012 - -

b. Calculate:
i. The overhead absorption rate for mixing department, finishing department and
packaging department by using appropriate basis. (Answer are to be rounded up to 2
decimal places)

MIXING (RM) FINISHING (RM) PACKAGING (RM)

Machine hr Machine hr Direct labour hr

143259 115730 100012 x 90%

15000 10000 12000

9.55 11.57 7.5

ii. Over or under absorption of overhead for each department. (Answer are to be
rounded up to the nearest RM)
 MIXING RM FINISHING RM PACKAGING RM
TOTAL
RM 9.55 x 14000 RM 11.53 x11000 RM 7.50 x 10000
BUDGETED
OVERHEAD 133,700 126,860 75,000
TOTAL ACTUAL
OVERHEAD 140,000 102,700 80,500
RESULT -6300 24130 -5500
OVER/UNDER UNDER OVER UNDER

c. Give a suitable basis of apportionment for the following expenses:

v. no of employee/direct wages
vi. maintenance hour
vii. floor area
viii. plant and machinery value
ix. kilowatt hours
Question 5
a. i. Prepare the income statement for the month of April 2020 using marginal costing
and
absorption costing approach.

Sayong Nara Sdn Bhd

Marginal Costing Income Statement for April 2020
RM RM
Sales 12000 units x RM 40 480,000.00

Less : Variable Cost of Good Sold

Opening Stock 1800 units x RM 23.70 42,660.00

331,800.0
Add : Production Cost 14000 units x RM 23.70 0
284,400.00
Less : Closing Stock 3800 units x RM 23.70 90,060.00
Gross Margin 195,600.00

Less : Variable Non-Production OH

Variable Selling & Admin RM 480000 x 15% 72,000.00

Contribution Margin 123,600.00

Less: Fixed Cost

Fixed Production OH 144000 units/ 12 x RM 1.50 18,000.00

45,000.00
Fixed Admin OH RM 216,000 / 12 x RM1.50 27,000.00
Net Profit 78,600.00
 Sayong Nara Sdn Bhd
Absorption Costing Income Statement for April 2020
RM RM
480,000.0
Sales 12000 units x RM 40 0
Variable Cost of Good
Less : Sold

Opening Stock 1800 units x RM 25.20 45,360.00

352,800.0
Add : Production Cost 14000 units x RM 25.20 0
302,400.0
Less : Closing Stock 3800 units x RM 25.20 95,760.00 0
Gross Profit 177,600.0
0

Less : Operating Expenses

Variable Selling & Admin RM 480000 x 15% 72,000.00

99,000.00
Add : Fixed Admin OH RM 216000 / 12 x RM 1.50 27,000.00
Unadjusted Net Income 78,600.00

Less: Fixed Cost

Fixed Production OH
Absorbed 14000 units x RM 1.50 21,000.00
Fixed Production OH
Incurred 144000 units / 12 x RM 1.50 18,000.00
Over Absorption
3,000.00
Adjusted Net Income 81,600.00
 RM RM
480,000.
Sales 12000 units x RM 40 00
Less : Variable Cost of Good Sold

Opening Stock 1800 units x RM 23.70 42,660.00

Add : Production Cost 14000 units x RM 23.70 331,800.00

284,400.
Less : Closing Stock 3800 units x RM 23.70 90,060.00 00
Gross Margin 195,600.
00
Less : Variable Non-Production OH

Variable Selling & Admin RM 480000 x 15% 72,000.00

123,600.
Contribution Margin 00
Less: Fixed Cost

Fixed Production OH 12000 units x RM 1.50 18,000.00

Fixed Selling OH RM 216000 / 12 18,000.00

57,600.
Fixed Admin OH 12000 units x RM1.80 21,600.00 00
Net Profit 66,000.
00
 RM RM
480,0
Sales 12000 units x RM 40 00.00
Less : Variable Cost of Good Sold

Opening Stock 1800 units x RM 25.20 45,360.00

14000 units x RM
Add : Production Cost 25.20 352,800.00
302,4
Less : Closing Stock 3800 units x RM 25.20 95,760.00 00.00
Gross Profit 177,6
00.00
Less : Operating Expenses

Variable Selling & Admin RM 480000 x 15% 72,000.00

Add : Fixed Admin OH 12000 x RM 1.80 21,600.00

Fixed Selling OH RM 216000 / 12 18,000.00 111,600.00

Unadjusted Net Income 66,0
00.00
Less: Fixed Cost

Fixed Production OH Absorbed 14000 units x RM 1.50 21,000.00

Fixed Production OH Incurred 12000 units x RM 1.50 18,000.00

Over
Absorption 3,000.00
Adjusted
Net
Income 69,000.00

Profit Reconciliation

RM
Marginal Costing Profit 66,000.00

Add RM
: Increase in Closing Stock (3800 - 1800 units) x RM 1.50 3,000.00

RM
Absorption Costing Profit 69,000.00
AMIRUL HISYAM BIN HASHIM
2019654486 (AP246 5A)

b. State true or false for the following statement:

i. True
ii. True
iii. False
iv. False
v. True