Far Reed Manufacturing Sdn Bhd is a cosmetic manufacturing company located in Sintok. Presented below is an excerpt of the company's trial balance for the year ended 31 December 2016.

Far Reed Manufacturing Sdn Bhd

Trial Balance

As at 31 December 2016

RM

Sales Expenses

70,000

Administration Expenses

45,000

Income Tax Expenses

25,000

Direct Material purchased

550,000

Direct Labour

280,000

Indirect Labour

120,000

Depreciation Expenses - Machine

15,000

Utilities Expenses

45,000

Depreciation Expenses - Factory Building

30,000

Insurance Expenses

20,000

Supplies Expenses

25,000

Other Expenses

30,000

Finished Goods Inventory, 31 December 2016

130,000

Work-in-process Inventory, 31 December 2016

54,000

Direct Material Inventory, 31 December 2016

35,000

Additional information:

(1)The opening inventories balances for the year beginning 1 January 2016 for finished goods, work-in-process and direct materials are RM180,000, RM65,000 and RM30,000 respectively.

(2)Utility, insurance, supplies and other expenses for factory and office are allocated as below:

FactoryOffice

Utility expenses40% 60%

Insurance expenses50% 50%

Supplies expenses 20% 80%

Other expenses 10% 90%

(3)Total sales for the year 2016 are RM2,100,000.

REQUIRED:

(a)Prepare the Statement of Cost of Goods Manufactured for Far Reed Manufacturing Sdn Bhd for the year ended 31 December 2016.

(10 Marks)

(b)Calculate the net profit of Far Reed Manufacturing Sdn Bhd for the year ended 31 December 2016.

(5 Marks)