Question 3 Al Firdaus Enterprise (AFE) produced 1,500 television stands in August. These stands are sold for RM300 each. AFE had 250 finished goods inventories at the beginning of August. At the end of August, there were 500 stands in the finished goods inventories. The following cost information relates to the month of August:

Purchases of raw materials RM120000

Beginning materials inventory RM17500

Ending materials inventory RM 25000

Direct labour RM75000

Indirect labour RM15000

Factory rent RM15500

Depreciation of machinery RM22500

Factory utilities RM4500

Factory supervision RM33700

Sales commission RM67500

Administrative expenses RM112500

Beginning work in process inventory RM4000

Ending work in process inventory RM5500

Beginning finished goods inventory RM30000

Ending finished goods inventory RM42500

Required:

a) Prepare a statement for cost of goods manufactured or the month of August. (16 marks)

b) Compute the average cost of producing one unit of television stand. (2 marks)

c) Prepare a statement of profit and loss for the month of August. (7 marks) (Total: 25 Marks)