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Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2021 (show your workings). State and briefly explain ONE (1) type of period cost and product cost that could be cut down in order for business entities to sustain during Covid-19 pandemic.

Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2021 (show your workings). State and briefly explain ONE (1) type of period cost and product cost that could be cut down in order for business entities to sustain during Covid-19 pandemic.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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wOW Furniture Sdn Bhd has been in business for the last ten years with sturdy financial performance. Covid-19 pandemic, nevertheless, has significantly affected WO's business performance. The owners, however, are positive that the business can sustain by implementing a few strategies including a cut-down on business costs. The following information was taken from the company's accounting records for the year ended 31 December 2021. В. Items RM Depreciation on factory machinery 75,000 Purchase of raw materials 198,000 Direct labour 101,000 Indirect labour 32,000 Administrative expense Rent expense Insurance expense Utilities expense 54,000 108,000 68,000 94,000 Indirect overhead 43,000 Salaries expense 72,000
Transcribed Image Text:wOW Furniture Sdn Bhd has been in business for the last ten years with sturdy financial performance. Covid-19 pandemic, nevertheless, has significantly affected WO's business performance. The owners, however, are positive that the business can sustain by implementing a few strategies including a cut-down on business costs. The following information was taken from the company's accounting records for the year ended 31 December 2021. В. Items RM Depreciation on factory machinery 75,000 Purchase of raw materials 198,000 Direct labour 101,000 Indirect labour 32,000 Administrative expense Rent expense Insurance expense Utilities expense 54,000 108,000 68,000 94,000 Indirect overhead 43,000 Salaries expense 72,000
Additional information: 1. Beginning and ending inventories are as follow: Ending (RM) 62,000 Beginning (RM) 55,000 Raw materials Work in process Finished goods 94,000 87,000 121,000 106,000 2. The allocation of expenses between factory and office is as follows: Factory Office (%) (%) 35% Rent expense Insurance expense Utilities expense Salary expense 65% 70% 30% 80% 20% 55% 45% REQUIRED: (a) Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2021 (show your workings). State and briefly explain ONE (1) type of period cost and product cost that could be cut down in order for business entities to sustain during Covid-19 pandemic. (b)
Transcribed Image Text:Additional information: 1. Beginning and ending inventories are as follow: Ending (RM) 62,000 Beginning (RM) 55,000 Raw materials Work in process Finished goods 94,000 87,000 121,000 106,000 2. The allocation of expenses between factory and office is as follows: Factory Office (%) (%) 35% Rent expense Insurance expense Utilities expense Salary expense 65% 70% 30% 80% 20% 55% 45% REQUIRED: (a) Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2021 (show your workings). State and briefly explain ONE (1) type of period cost and product cost that could be cut down in order for business entities to sustain during Covid-19 pandemic. (b)
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