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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:
1. Apportion the cost of rental based on the following percentage: Production overhead 25%, Administration overhead 25%, Selling overhead 25% and Distribution overhead 25%.
2. 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
A. 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:
a) Analyse the costs according to their behaviour. [9 marks]
b) 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:
a) Economic order quantity [2 marks]
b) Reorder level [2 marks]
c) Minimum stock level [3 marks]
Maximum stock level [3 marks]
