Al Firdaus Enterprise (AFE) produced 1,500 television stands in August. These stands are sold for RM300 each. AFE had 250 finished goods inventories at the beginning of August. At the end of August, there were 500 stands in the finished goods inventory. The following cost information relates to the month of August:

Purchases of raw materials 120,000

Beginning materials inventory 17,500

Ending materials inventory 25,000

Direct labour 75,000

Indirect labour 15,000

Royalty expenses 5,000

Factory rent 15,500

Depreciation of machine 22,500

Factory utilities 4,500

Factory supervision 33,700

Sales commission 67,500

Administration expenses 15,000

Beginning work in process inventory 4,000

Ending work in process inventory 5,500

Beginning finished goods inventory 30,000

Ending finished goods inventory 42,500

Required:

a) statement for cost of goods manufactured.

(16 marks)

b) Compute the average cost of producing one unit of television stand.

(2 marks)

c) statement of profit and loss.

(7 marks)