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Amaya Fantasia Enterprise (AFE) produced 1,500 television stands in August. These stands are sold for RM300 each. AFE had 250 finished goods inventories at the

Amaya Fantasia 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 inventories. The following cost information relates to the month of August:

RM

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 machinery

22,500

Factory utilities

4,500

Factory supervision

33,700

Sales commission

67,500

Administrative 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

From the above information, you are required to answer the below questions.

  1. Prepare AFEs Statement for Cost of Goods Manufactured for the month of August.

(7 marks)

  1. Prepare AFEs Statement of Profit or Loss for the month of August.

(8 marks)

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