QUESTION 3 (20 MARKS: 48 MINUTES) Syarikat Payung Emas (SPE) operates in Jitra, producing a single product named Jus Herbasihat. SPE has provided the following data conceming the month of December 2020 operation: RM121 300 6,900 7,100 100 Item Selling price Unit of beginning inventory Unit produced Unit sold Unit of ending inventory Variable cost per unit (RM): Direct materials Direct labour Manufacturing overhead Selling and administrative Fixed costs (RM): Manufacturing overhead Selling and administrative RM36 RM43 RM3 RM11 RM131,100 RM49,700 The company produces the same number of units every month, although the sales in units vary from month to month. The variable costs per unit and total fixed costs have been constant from month to month. REQUIRED: (a) Compute the unit product cost for the month under Variable Costing (2 Marks) (b) Prepare a contribution format income statement for the month using Variable Costing. (7 Marks) Without preparing an income statement, determine the Absorption Costing net operating income for the month. (Hint: Use the reconciliation method.) (5 Marks) (d) Determine TWO (2) advantages of the amount calculated in (c) in comparison to (b). (3 Marks) (c) Analyze ONE (1) disadvantage of (b) amount in comparison to (c) and vice versa. (3 Marks) (c) END OF QUESTIONS