Below are the costs for the month of April 2021 for Cemerlang Sdn, Bhd. RM Raw material used 20,000 Factory operators wages 20,000 Rental 10,000 Utilities 5,000 Insurance for factory 2,000 Adminis
Below are the costs for the month of April 2021 for Cemerlang Sdn, Bhd.
RM | |
Raw material used | 20,000 |
Factory operators wages | 20,000 |
Rental | 10,000 |
Utilities | 5,000 |
Insurance for factory | 2,000 |
Administration manager’s salaries | 6,000 |
Carriage inwards for raw materials | 1500 |
Salaries for delivery van’s driver | 3,000 |
Indirect labour cost | 13,000 |
Advertising costs | 7,000 |
Costing clerks’ salaries | 3,000 |
Bought shelves for administration office | 15,000 |
Revenue | 110,000 |
Notes:
Apportion the cost of rental based on the following percentage: Production overhead 25%, Administration overhead 25%, Selling overhead 25% and Distribution overhead 25%.
Utilities will be apportioned based on the following percentage: Production overhead 50%, Administration overhead 20%, Selling Overhead 10% and Distribution overhead 20%.
Required:
Prepare the operating statement for the Cemerlang Sdn. Bhd. [Total: 15 marks]
Question 4
Below are the costs and production volume of Aunty Annie Bakery Sdn. Bhd. during the months of April and May 2021.
Month | March | April | May |
Units | 15,000 | 25,000 | 35,000 |
Material costs | 30,000 | 50,000 | 70,000 |
Insurance | 3,000 | 3,000 | 3,000 |
Power | 23,000 | 38,000 | 53,000 |
Depreciation – equipment | 5,000 | 5,000 | 5,000 |
Advertising costs | 16,000 | 26,000 | 36,000 |
Indirect labour | 60,000 | 100,000 | 140,000 |
Warehouse costs | 8,000 | 13,000 | 18,000 |
Required:
Analyse the costs according to their behaviour. [9 marks]
Predict the costs for the month of June when 50,000 units will be produced.
[6 marks]
[Total: 15 marks]
Question 5
The following information are the information for Sapphire Enterprise.
Delivery period | 2 to 4 weeks |
Maximum consumption | 400 units |
Minimum consumption | 120 units |
Units required per annum | 20,000 |
Ordering cost | RM20 |
Annual cost of carrying a unit in stock | RM5 |
You are required to calculate for each component:
Economic order quantity [2 marks]
Reorder level [2 marks]
Minimum stock level [3 marks]
Maximum stock level [3 marks]