QUESTION 1 Apple Green Sdn Bhd, manufactures a variety of pressure valves that are sold to customers all over Malaysia. Details on production and sales of the pressure valves for January and Febuary 2022 are as follows: 1. Production (units) Sales (units) Each of the pressure valves can be sold for RM500. The standard cost per unit of the pressure valves is as follows: 2. 3. 4. Cost of production: Direct materials: Material AA Material AB January 1,700 1,900 Direct labour: Assembly department Finishing department Variable production overhead RM 88 95 Additional Information: Fixed production overhead is absorbed based on number of pressure valves produced. It is estimated that 24,000 units of pressure valves will be produced in a year and budgeted fixed production overhead is RM576,000 per annum. February 2,500 2,200 55 45 38 Fixed administrative overhead is RM120,000 per year and variable selling overhead is RM38 per unit of pressure valves sold. The number of unsold pressure valves at the end of December 2021 is 400 units. The actual fixed production overhead and fixed administration overhead are assumed same as budgeted. Required: a. b. i. ii. Prepare the Statement of Comprehensive Income for Apple Green Sdn Bhd for the month of February 2022 under marginal costing and absorption costing method. (15 marks) Prepare the Profit Reconciliation Statement to show the differences of net profit under the marginal and absorption costing approaches. (4 marks) Determine the production cost per unit under marginal costing and absorption costing method. iii. GROUP ASSIGNMENT 2 ACC 416 FEB2022 Discuss the uses of marginal costing approach for internal reporting. Explain two (2) differences of marginal costing and absorption costing. Discuss the effect on the net profit using both costing approaches if: Units produced exceed units sold Units sold exceed units produced. a. b. (2 marks) (4 marks) (5 marks)