QUESTION 2

The accountant of Jim Sdn. Bhd. presented the following information from the company's accounting records for the year ended 31 December 2019.

RM

Inventories at 1 January 2019:

Raw materials

20,000

Work in process

12,000

Finished goods

80,000

Inventories at 31 December 2019:

Raw materials

24,000

Work in process

8,000

Finished goods

90,000

Sales

1,100,000

Additional information:

The allocation for the following expenses are as follows:

OfficeFactory

Utility expenses60%40%

Insurance expenses30%70%

Maintenance expenses40%60%

Supplies expenses50%50%

REQUIRED:

(a)Prepare the Statement of Cost of Goods Manufactured for Jim Sdn. Bhd. for the year ended 31 December 2019.

(b)Prepare the Statement of Profit or Loss and Other Comprehensive Income for JIM Sdn. Bhd. for the year ended 31 December 2019.

Selling expenses

170,000

Supplies expenses

60,000

Administrative expenses

50,000

Direct labour

120,000

Purchases of raw materials

190,000

Utility expenses

60,000

Factory management salaries

70,000

Insurance expenses

30,000

Maintenance expenses

28,000

Depreciation for factory

20,000

Factory rental

10,000