Question 2

The following information is available for Erida Sdn Bhd (ESB) for 2019:

Inventories	January 1 (RM)	December 31(RM)
Materials	65,000	35,000
Work in process	30,000	24,000
Finished goods	60,000	62,500

Additional information:

RM

Materials purchased during the year 100,000

Direct labour incurred in production 110,000

Factory overhead incurred in production:

Indirect labour RM24,000

Depreciation on factory equipment RM10,000

Factory supplies and utility costs RM10,000

Total 44,000

Selling expenses 20,000

Administrative expenses 15,000

Sales 366,000

Required:

1. Calculate cost of direct materials used in production (4 marks)
2. Calculate total manufacturing costs incurred during the year (6 marks)
3. Calculate cost of goods manufactured during the year. (4 marks)
4. Prepare an income statement for the year 2019. (6 marks)

(Total:20 Marks)