1,470 1,426 During the year, the company paid RM90,000 for a new piece of machinery. Dividends paid during 2018 totaled RM66,000 and interest paid was RM28,000. Required a. Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFRS 107 Statement of Cash Flows, using the indirect method; [18 marks) b. Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFRS 107 Statement of Cash Flows, using the direct method; (12 marks] 2,129,600 The following additional data relate to each product: ZOO Product Batch size (units) No of purchase orders per batch Machine hours per unit 800 10 800 12 Loci Sdn Bhd wants to boost sales revenue in order to increase profits but its capacity to do this is limited because of its use of cost plus pricing and the application of the standard mark-up. The finance director has suggested using activity based costing (ABC) instead of full absorption costing, since this will alter the cost of the products and may therefore enable a different price to be charged. Required: You are the accountant of Loci Sdn Bhd. In an annual meeting, you are required by the finance director to take the following actions. Explain what is full absorption costing to the board of directors. Explain what is activity based costing. Explain the steps involved in applying activity-based costing. [3 marks] [3 marks) [4 marks] Calculate the budgeted full production cost per unit of each product using Loci Sdn Bhd's current method of absorption costing. All workings should be to two decimal places. [3 marks) e. Calculate the budgeted full production cost per unit of each product using activity based costing. All workings should be to two decimal places. [12 marks] Discuss the impact on the selling prices and the sales volumes OF EACH PRODUCT which a change to activity based costing would be expected to bring about. [5 marks] 1,470 1,426 During the year, the company paid RM90,000 for a new piece of machinery. Dividends paid during 2018 totaled RM66,000 and interest paid was RM28,000. Required a. Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFRS 107 Statement of Cash Flows, using the indirect method; [18 marks) b. Prepare a statement of cash flows for Kopi Sdn Bhd for the year ended 31 December 2018 in accordance with the requirements of MFRS 107 Statement of Cash Flows, using the direct method; (12 marks] 2,129,600 The following additional data relate to each product: ZOO Product Batch size (units) No of purchase orders per batch Machine hours per unit 800 10 800 12 Loci Sdn Bhd wants to boost sales revenue in order to increase profits but its capacity to do this is limited because of its use of cost plus pricing and the application of the standard mark-up. The finance director has suggested using activity based costing (ABC) instead of full absorption costing, since this will alter the cost of the products and may therefore enable a different price to be charged. Required: You are the accountant of Loci Sdn Bhd. In an annual meeting, you are required by the finance director to take the following actions. Explain what is full absorption costing to the board of directors. Explain what is activity based costing. Explain the steps involved in applying activity-based costing. [3 marks] [3 marks) [4 marks] Calculate the budgeted full production cost per unit of each product using Loci Sdn Bhd's current method of absorption costing. All workings should be to two decimal places. [3 marks) e. Calculate the budgeted full production cost per unit of each product using activity based costing. All workings should be to two decimal places. [12 marks] Discuss the impact on the selling prices and the sales volumes OF EACH PRODUCT which a change to activity based costing would be expected to bring about. [5 marks]