Question 1 Molly Enterprise provided the inventory movements for the full year 2021: ACC1113 (F) / Page 2 of 6 Month January May September December Required: Bought 300 at RM40 each 400 at RM41 each 200 at RM43 each 100 at RM45 each March July October Sold 150 at RM60 each 250 at RM63 each 150 at RM65 each (a) Using the following methods calculate the closing inventory value as at 31 December 2021. (Round your answers to 2 decimal points. Eg: 3.127 =3.13) (i) First in, First out method (FIFO) (ii) Moving Average method (MAVG) (iii) Last in, First out method (LIFO) (7 marks) (6 marks) (6 marks) (b) Describe, but do not calculate, how LIFO and FIFO affect the cost of goods sold and the valuation of closing stock: (i) when purchase prices are rising (3 marks) (ii) when purchase prices are falling. (3 marks) Note: Show all your relevant working. (Total: 25 marks)

Question 2 Company X is preparing a job cost estimate that will be used to provide a quote for a potential customer. Estimated costs for the job are to be based on the following: Production overheads Absorbed at 20% of prime cost (including labour bonus) + RM9 per direct labour hour Absorbed at 25% of total production cost ACC1113 (F) / Page 3 of 6 Materials RM2,893 Direct labour 210 hours at a basic rate of RM8 per hour. Direct production staff also receive a bonus each period. The bonus is paid on actual hours worked at a rate per hour calculated using the following formula: ([time allowed time worked] / time allowed)] x basic rate per hour The bonus to be included currently in the costing of all jobs is based on the following estimates for the period. Total time worked 3,400 labour hours Total time allowed 4,000 labour hours Non-production overheads Quoted prices are calculated to provide Company X with a net profit margin of 20% of sales. Required: (a) Compute the total estimated production cost of the job. (b) Calculate the price that should be quoted for the job. (c) Briefly explain TWO (2) main features of job costing. (d) List TWO (2) industries that job costing is most prevalent. (10 marks) (5 marks) (6 marks) (4 marks)

Question 3

Josh Berhad has two production departments, X and Y, and two service departments, Store and General Service. The company has budgeted the following costs for the forthcoming period: Factory Overheads Departments RM Indirect material X 11,000 Y 12,900 Store 9,600 General Service 12,600 Maintenance 100,000 Plant insurance 58,000 Heat and light 75,000 Canteen cost 24,000 Depreciation of machine 58,000 Supervisor salaries 120,000 Factory rent 50,000 Direct materials 34,500 Direct labour 20,800 The following information is also available: Item X Y Store General Service Floor Area (Sq. ft.) No. of employees Plant value (000) Depreciation per year Machine hours Direct material usage 10,000 40 RM100 25% 60,000 RM200,000 10,000 20 RM100 15% 40,000 RM300,000 2,500 10 RM40 20% 2,500 10 RM50 20% Overheads are absorbed in both production departments on a Machine Hour basis. Required: (a) Prepare an overhead analysis statement for the period, using suitable bases of apportionment. (15 marks) (b) Calculate the overhead absorption rate (to the nearest 2 decimal points) for the production departments. (4 marks)

(c) State an appropriate basis of apportionment for each of the following production overhead costs

(i) Factory administration costs

(ii) Machine insurance

(iii) Cleaning equipment costs (6 marks) (Total: 25 marks)

Question 4

Marco Polo Restaurant, an exclusive and elegant western restaurant located in Ipoh provides excellent dining experience daily for the walk-in guests and hosts sumptuous wedding banquet only for its Diamond-Circle VIP members. The following information is provided by restaurant: RM (i) Salary paid to chefs who were in charge of meal preparation for the banquet. 86,400 (ii) Tips paid to waitresses by diners. 6,790 (iii) Basic wages paid to valet, who works for a sub contractor. 4,800 (iv) Shift allowance paid to junior chefs signed up for evening shift voluntarily. 16,500 (v) Salary paid to the restaurant manager. 90,000 (vi) Basic salaries paid to junior chef helps who worked overtime. 26,000 (vii) Salary and allowance paid to the sub contract teams of interior decorators who choose the themes and decoration of venues of banquet. 120,000 (viii) Overtime premium paid to chefs. 24,500 (ix) Allowance paid to supervisors who helped out at kitchen during wedding banquet. 16,500 (xi) Servicing charge paid to a maintenance worker who service air conditioners in the office 7,000 (xii) Fees paid to wedding banquet consultants. 35,800 xiii) Overtime premium paid to chefs who work to recover dishes due to sudden barbecue grills failure. 20,900 (xiv) Salary and allowance were paid to part-time live-bands. 55,300 (xv) Wages paid to cleaners by the Management of the building who clean up the parking lots. 20,000 (xvi) Basic salary paid to the Master chef who supervise the chefs. 183,400 (xvii) Overtime premium paid to waitresses during banquet. 16,400 (xviii) Rent paid for the restaurant 144,000 (xix) Fees paid to guest chefs who create new dishes. 19,420