Aatech Sdn. Bhd. produces a premium furniture for West Malaysia customer. Cost information is reflected as below

Selling price per unit

Direct material Direct labor per unit Variable production overhead per unit Variable distribution cost per unit Variable selling cost per unit

Total fixed production cost for a period Total fixed administration cost for a period

Details of actual sold and produced units are reflected as below

Production Unit October 20,000 November 25,000 December 30,000

RM 45

8.50 13.00 5.30 2.00 3.20

200,000 120,000

Unit Sold 23,000 28,000 27,000

You are informed that:

1. i) Inventory has balance of 8,000 as at 30 September 2020

2. ii) Sales commission shall be increased by RM1 if sales volume achieve 25,000 and above

   and fixed administration expenses are expected to increase by 5% due to salary adjustment of administration staff

Required:

1. (i) Calculate the inventory valuation per unit using marginal costing technique

   (5 marks)

2. (ii) Prepare profit statement for month ended 31 October, 30 November and 31 December 2021 using Marginal Costing technique.

   (19 marks)