Cost Accounting

Nobita Bhd produces and sells Product Doremon. The selling price per unit of Product Doremon is RM30. The Company is preparing budgets for the months of November and December, 2022. The following are the budgeted volumes for the 2 months: December November 5,000 4,500 Production(units) Sales (units) 4,000 5,500 Stock of products at the beginning of November 2022 is expected to be 1,000 units. The Costing Department has provided the following data of standard production cost per unit: Direct materials. Direct labour 2 kilos at RM 4 per kilo 2 hours at RM 3.5 per hour RM1 per direct labour hour RM1.5 per direct labour hour Variable production overhead Fixed production overhead The fixed production overhead is budgeted based on normal monthly production units of 4,000 units. Other non-production costs (other overhead) are budgeted as follows: Variable marketing cost Fixed marketing cost 6% of sales value per month RM Fixed administration cost RM Required: 5,000 4,000 per month Required: a. Prepare budgeted profit statements for each month, based on each of the following approaches: (i) Absorption costing 4 (ii) Marginal costing (16 marks) b. Prepare a budgeted profit reconciliation statement. (4 marks) C. Explain the differences between job costing costing and process costing