Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the two, chocolate cake is the more popular. The following information was provided for the coming year. [Rayya Sdn. Bhd. mengeluarkan dua jenis kek: kek mentega dan kek coklat. Daripada keduanya, kek coklat adalah yang lebih terkenal. Maklumat berikut telah disediakan bagi tahun akan datang.] ● Details Additional information: [Maklumat tambahan:] ● Table 5: Production Costs [Jadual 5: Kos-kos Pengeluaran] Butter Cake RM 80,000 10,000 20,000 Sales Variable cost of goods sold Direct fixed overhead Chocolate Cake RM 180,000 30,000 100,000 Sales commission of 5% of sales revenue is paid for each cakes. (Komisen jualan sebanyak 5% daripada hasil jualan dibayar untuk setiap kek.] Direct fixed selling and administrative expenses was estimated to be RM4,000 for the butter cake and RM10,000 for the chocolate cake. (Belanja jualan dan pentadbiran tetap langsung dianggarkan RM4.000 untuk kek mentega dar RM10,000 untuk kek coklat.] Common fixed overhead associated with owning the company was estimated to b RM18,000. [Overhed tetap biasa yang dikaitkan dengan pemilikan syarikat dianggarkan RM18,000.] Common selling and administrative expenses was estimated to be RM8,000.
Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the two, chocolate cake is the more popular. The following information was provided for the coming year. [Rayya Sdn. Bhd. mengeluarkan dua jenis kek: kek mentega dan kek coklat. Daripada keduanya, kek coklat adalah yang lebih terkenal. Maklumat berikut telah disediakan bagi tahun akan datang.] ● Details Additional information: [Maklumat tambahan:] ● Table 5: Production Costs [Jadual 5: Kos-kos Pengeluaran] Butter Cake RM 80,000 10,000 20,000 Sales Variable cost of goods sold Direct fixed overhead Chocolate Cake RM 180,000 30,000 100,000 Sales commission of 5% of sales revenue is paid for each cakes. (Komisen jualan sebanyak 5% daripada hasil jualan dibayar untuk setiap kek.] Direct fixed selling and administrative expenses was estimated to be RM4,000 for the butter cake and RM10,000 for the chocolate cake. (Belanja jualan dan pentadbiran tetap langsung dianggarkan RM4.000 untuk kek mentega dar RM10,000 untuk kek coklat.] Common fixed overhead associated with owning the company was estimated to b RM18,000. [Overhed tetap biasa yang dikaitkan dengan pemilikan syarikat dianggarkan RM18,000.] Common selling and administrative expenses was estimated to be RM8,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Required:
1) Develop a segmented income statement for Rayya Sdn. Bhd. for the coming year using
variable costing.
![(a) Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the
two, chocolate cake is the more popular. The following information was provided for
the coming year.
[Rayya Sdn. Bhd. mengeluarkan dua jenis kek: kek mentega dan kek coklat. Daripada keduanya, kek
coklat adalah yang lebih terkenal. Maklumat berikut telah disediakan bagi tahun akan datang.]
●
Details
Additional information:
[Maklumat tambahan:]
●
Table 5: Production Costs
[Jadual 5: Kos-kos Pengeluaran]
Butter Cake
RM
80,000
10,000
20,000
Sales
Variable cost of goods sold
Direct fixed overhead
Chocolate Cake
RM
180,000
30,000
100,000
Sales commission of 5% of sales revenue is paid for each cakes.
(Komisen jualan sebanyak 5% daripada hasil jualan dibayar untuk setiap kek.]
Direct fixed selling and administrative expenses was estimated to be RM4,000 for
the butter cake and RM10,000 for the chocolate cake.
(Belanja jualan dan pentadbiran tetap langsung dianggarkan RM4.000 untuk kek mentega dan
RM10,000 untuk kek coklat.]
Common fixed overhead associated with owning the company was estimated to be
RM18,000.
(Overhed tetap biasa yang dikaitkan dengan pemilikan syarikat dianggarkan RM18.000.J
Common selling and administrative expenses was estimated to be RM8,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F764bc6f6-61bb-4582-b817-f49196045f74%2Fdd1b57b9-4148-4a20-b115-0622169d345c%2F3f1xju7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(a) Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the
two, chocolate cake is the more popular. The following information was provided for
the coming year.
[Rayya Sdn. Bhd. mengeluarkan dua jenis kek: kek mentega dan kek coklat. Daripada keduanya, kek
coklat adalah yang lebih terkenal. Maklumat berikut telah disediakan bagi tahun akan datang.]
●
Details
Additional information:
[Maklumat tambahan:]
●
Table 5: Production Costs
[Jadual 5: Kos-kos Pengeluaran]
Butter Cake
RM
80,000
10,000
20,000
Sales
Variable cost of goods sold
Direct fixed overhead
Chocolate Cake
RM
180,000
30,000
100,000
Sales commission of 5% of sales revenue is paid for each cakes.
(Komisen jualan sebanyak 5% daripada hasil jualan dibayar untuk setiap kek.]
Direct fixed selling and administrative expenses was estimated to be RM4,000 for
the butter cake and RM10,000 for the chocolate cake.
(Belanja jualan dan pentadbiran tetap langsung dianggarkan RM4.000 untuk kek mentega dan
RM10,000 untuk kek coklat.]
Common fixed overhead associated with owning the company was estimated to be
RM18,000.
(Overhed tetap biasa yang dikaitkan dengan pemilikan syarikat dianggarkan RM18.000.J
Common selling and administrative expenses was estimated to be RM8,000.
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