BAC1064-ADM Individual A 1810 QUESTION 2 Taharah Industries developed the following information for the product it sells: Sales price Variable cost of goods sold Fixed cost of goods sold Variable selling expense Variable administrative expense Fixed selling expense Fixed administrative expense RM50 per unit RM28 per unit RM650,000 10% of sales price RM2.00 per unit RM400,000 RM300,000 For the year ended 31 December 2017, Taharah produced and sold 100,000 units of product Instructions: (a) Prepare a CVP income statement using the contribution margin format for Taharah (4 marks) Industries for 2017 (b) What was the company's break-even point in units in 2017? Use the contribution margin (3 marks) technique. (c) What was the company's margin of safety in dollars in 2017? (3 marks) TOTAL 10 MARKS BAC1064-ADM 810 The following costs and inventory data were taken from the accounts of Reiser Berhad for 2017: I January 2017 31 December 2017 Raw materials Work in process Finished goods RM) 8,000 15,000 16,000 (RM) 7,000 3,000 10,000 Costs incurred Raw materials purchases Direct labor Factory rent Factory utilities Indirect materials Indirect labor Selling expenses Administrative expenses RM) 93,000 42,000 8,000 7,000 4,000 6,000 5,000 12,000 (a) Prepare a schedule showing the amount of direct materials used in production during the year (2 marks) (b) Compute the amount of manufacturing overhead incurred during the year. (2 marks) (c) Prepare a schedule of Cost of Goods Manufactured for Reiser Berhad for the year ended 31 December 2017 in good form. 4 marks) (d) Prepare the Cost of Goods Sold section of the Income Statement for Reiser Berhad for the year ended 31 December 2017 in good form. (2 marks) [TOTAL 10 MARKS! NAR 1/2