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WPS Office W EXERCISE TOPIC 8.docx O Sembag. O Go Premium E Menu v Home Page Layout Q Click to find commands 回:へ Insert References Review View Section Tools - 11 BI U-A- X' X, A- ab- A- A A X Cut DA A Q I- =-E- E E A- A1 5- D AaBbCcDd AaBbAaBbC AaBbCAaBbCcl Calibri (Body) Paste U Copy Format Painter Normal Heading 1 Heading 2 Heading 3 Heading 4 New Style" Text Tools " Find and Select Settings" Replace Student Tools QUESTION 1 Nuraz Sdn Bhd (NSB) manufactures modem vase in northem areas and the price per unit is RM50. Currently, company uses absorption costing and the owner is considering to change the reporting method to variable costing. Thus, he asked the accountant to show the difference in income using both methods. To do so, the accountant rely on the information below: Production Beginning finished goods inventory 70,000 units =} 17,500 units Sales RM3,125,000 Direct materials RM840.000 Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative RM630,000 RM280.000 RM700,000 RM350,000 RM700,000 REQUIRED: Calculate ending finished goods inventory (in RM) using: i. Absorption costing. a. ii. Variable costing. b. Without preparing income statement, calculate the different in income reported under absorption costing and variable costing. The company expects to increase the number of inventory during next year. In this situation, explain which method will report greater income, and why. c. d. Explain the usage of absorption costing and variable costing system. ... Page Num: 1 Page: 1/2 Section: 1/1 Setvalue: 2.5cm Row: 1 Column: 1 Words: 303 O Spell Check 90% 8:09 PM P Type here to search A O O 4) . 23/05/2021

WPS Office W EXERCISE TOPIC 8.docx O Sembag. O Go Premium E Menu v Home Page Layout Q Click to find commands 回:へ Insert References Review View Section Tools - 11 BI U-A- X' X, A- ab- A- A A X Cut DA A Q I- =-E- E E A- A1 5- D AaBbCcDd AaBbAaBbC AaBbCAaBbCcl Calibri (Body) Paste U Copy Format Painter Normal Heading 1 Heading 2 Heading 3 Heading 4 New Style" Text Tools " Find and Select Settings" Replace Student Tools QUESTION 1 Nuraz Sdn Bhd (NSB) manufactures modem vase in northem areas and the price per unit is RM50. Currently, company uses absorption costing and the owner is considering to change the reporting method to variable costing. Thus, he asked the accountant to show the difference in income using both methods. To do so, the accountant rely on the information below: Production Beginning finished goods inventory 70,000 units =} 17,500 units Sales RM3,125,000 Direct materials RM840.000 Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative RM630,000 RM280.000 RM700,000 RM350,000 RM700,000 REQUIRED: Calculate ending finished goods inventory (in RM) using: i. Absorption costing. a. ii. Variable costing. b. Without preparing income statement, calculate the different in income reported under absorption costing and variable costing. The company expects to increase the number of inventory during next year. In this situation, explain which method will report greater income, and why. c. d. Explain the usage of absorption costing and variable costing system. ... Page Num: 1 Page: 1/2 Section: 1/1 Setvalue: 2.5cm Row: 1 Column: 1 Words: 303 O Spell Check 90% 8:09 PM P Type here to search A O O 4) . 23/05/2021

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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REQUIRED: 

  1. Calculate ending finished goods inventory (in RM) using:

 

  • Absorption costing.
  • Variable costing. 

 

 2. Without preparing income statement, calculate the different in income reported under absorption costing and variable costing.

WPS Office W EXERCISE TOPIC 8.docx + Sembag. O Go Premium = Menu v Home Page Layout References Review View Section Tools Q Click to find commands Insert A X cut - 11 A A DE A- 21 5- A AaBbCcDd AaBbAaBbCIAaBbCiAaBbCcl Calibri (Body) L Copy Format BI U- A- X' X, A- ab- A A Heading 3 Heading 4 Normal Heading 1 Heading 2 = New Style Find and Select Replace Paste Text Tools Settings Student Tools Painter QUESTION 1 Nuraz Sdn Bhd (NSB) manufactures modern vase in northern areas and the price per unit is RM50. Currently, company uses absorption costing and the owner is considering to change the reporting method to variable costing. Thus, he asked the accountant to show the difference in income using both methods. To do so, the accountant rely on the information below: Production 70,000 units 17,500 units Beginning finished goods inventory Sales RM3,125,000 Direct materials RM840,000 Direct labor RM630,000 Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative RM280,000 RM700,000 RM350.000 RM700,000 REQUIRED: Calculate ending finished goods inventory (in RM) using: i. Absorption costing. а. ii. Variable costing. b. Without preparing income statement, calculate the different in income reported under absorption costing and variable costing. The company expects to increase the number of inventory during next year. In this c. situation, explain which method will report greater income, and why. d. Explain the usage of absorption costing and variable costing system. Page Num: 1 Page: 1/2 Section: 1/1 SetValue: 2.5cm M Spell Check > O 9 23 M E Row: 1 Column: 1 Words: 303 90% - 8:09 PM O Type here to search O O (4) . 23/05/2021
Transcribed Image Text:WPS Office W EXERCISE TOPIC 8.docx + Sembag. O Go Premium = Menu v Home Page Layout References Review View Section Tools Q Click to find commands Insert A X cut - 11 A A DE A- 21 5- A AaBbCcDd AaBbAaBbCIAaBbCiAaBbCcl Calibri (Body) L Copy Format BI U- A- X' X, A- ab- A A Heading 3 Heading 4 Normal Heading 1 Heading 2 = New Style Find and Select Replace Paste Text Tools Settings Student Tools Painter QUESTION 1 Nuraz Sdn Bhd (NSB) manufactures modern vase in northern areas and the price per unit is RM50. Currently, company uses absorption costing and the owner is considering to change the reporting method to variable costing. Thus, he asked the accountant to show the difference in income using both methods. To do so, the accountant rely on the information below: Production 70,000 units 17,500 units Beginning finished goods inventory Sales RM3,125,000 Direct materials RM840,000 Direct labor RM630,000 Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative RM280,000 RM700,000 RM350.000 RM700,000 REQUIRED: Calculate ending finished goods inventory (in RM) using: i. Absorption costing. а. ii. Variable costing. b. Without preparing income statement, calculate the different in income reported under absorption costing and variable costing. The company expects to increase the number of inventory during next year. In this c. situation, explain which method will report greater income, and why. d. Explain the usage of absorption costing and variable costing system. Page Num: 1 Page: 1/2 Section: 1/1 SetValue: 2.5cm M Spell Check > O 9 23 M E Row: 1 Column: 1 Words: 303 90% - 8:09 PM O Type here to search O O (4) . 23/05/2021
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