QUESTION 3 The following information the manufacturing and sales activities of Polygold Sdn Bhd for the month of June 2021. There was no opening inventory at the beginning of June 2021. Fixed production overheads per period Fixed administrative costs per period RM 16,000 RM 14,000 Selling price per box Normal production capacity Actual production for the period Sales volume for the period RM 80 4,000 boxes 5,000 boxes 2,000 boxes Direct materials cost per box Direct labour cost per box Variable production overhead cost per box RM 30 RM 20 RM 10 REQUIRED a) Calculate the unit product costs using marginal costing and absorption costing methods. b) Prepare the statements of profit or loss for the month ending 30 June 2021 using: i) Marginal Costing ii) Absorption Costing

QUESTION 3 The following information the manufacturing and sales activities of Polygold Sdn Bhd for the month of June 2021. There was no opening inventory at the beginning of June 2021. Fixed production overheads per period Fixed administrative costs per period RM 16,000 RM 14,000 Selling price per box Normal production capacity Actual production for the period Sales volume for the period RM 80 4,000 boxes 5,000 boxes 2,000 boxes Direct materials cost per box Direct labour cost per box Variable production overhead cost per box RM 30 RM 20 RM 10 REQUIRED a) Calculate the unit product costs using marginal costing and absorption costing methods. b) Prepare the statements of profit or loss for the month ending 30 June 2021 using: i) Marginal Costing ii) Absorption Costing

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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QUESTION 1 Nice2022 Limited is a company producing and selling plastic products. Sales price per unit is RM20.00. Below is the information on the production and sales of the product for 2021: Cost per unit: RM Direct material 0.90 Direct labour 2.50 Variable overhead 0.50 Fixed overhead 0.50 Other costs: RM Variable selling expenses 5% from total sales Fixed selling expenses 25,000 Fixed administration expenses 15,000 Unit Unit produced, sold and stock: Sales 130,000 Opening stock Production 10,000 150,000 Additional information: ● Budgeted fixed overhead amounted to RM105,000 . Budgeted production are 175,000 units You are required to: a) Calculate the over/under absorbed of overhead. b) Prepare the statement of profit and loss using the absorption costing format. c) Show the marginal profit/loss by preparing the profit reconciliation statement
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Income statement under variable costing for the period ending December 31, 018
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hts 04:50:50 Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 81 500 1,500 1,600 400 $ 19 $ 16 $ 1 $ 11 $22,500 $ 3,200 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the…
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INFORMATION RAW MATERIAL STOCK Meters Cost per metre Total amount Opening Balance (1 Jan 2023) Purchases 25 Feb 2023 600 m R39 500 4 215 m R316 710 2 220 m R72.00 R159 840 25 May 2023 1 680 m R78.00 R131 040 25 August 2023 R82.00 R25 830 Returns: (damaged stock) 25 May 2023 195 m R78,00 Closing balance (31 Dec 2023) 495 m Stock sent to the factory 4 125 m The previous bookkeeper prepared a factory overhead cost note but did not take into account the items listed below. Their total was R44 188. Note that the other cost accounts were adjusted accordingly. Rent Expense Water & Electricity Insurance Office sundry expenses 72 252 51 840 22 050 9570 ⚫Rent must be allocated according to floor space occupied. The factory occupies 500 m², the sales department occupies 300 m²and the office occupies 100 m². 75% of the water and electricity relates to the factory. • Insurance on equipment is allocate in the ratio 3:2: 1 between the factory, sales and office departments. Note that insurance is a…
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