Question
Question 3 The following information is an extract of a year end trial balance of MR Manufacturing Sdn Bhd as at 31 December 2018. MR
Question 3
The following information is an extract of a year end trial balance of MR Manufacturing Sdn Bhd as at 31 December 2018.
MR Manufacturing Sdn Bhd
Trial Balance
As at 31 December 2018
| Debit (RM)
| Credit (RM) |
Cash | 26,000 |
|
Accounts Receivable | 49,000 |
|
Finished Goods Inventory, 1 January 2018 | 24,000 |
|
Work In Process Inventory, 1 January 2018 | 10,200 |
|
Raw Materials Inventory, 1 January 2018 | 9,400 |
|
Equipment | 300,000 |
|
Accumulated Depreciation-Equipment |
| 60,000 |
Accounts Payable |
| 130,000 |
Capital |
| 80,000 |
Sales |
| 990,000 |
Direct Labour | 124,000 |
|
Raw Material Purchases | 305,000 |
|
Indirect Labour | 106,500 |
|
Factory Supplies Expenses | 24,000 |
|
Maintenance Expenses of Factory Equipment | 80,500 |
|
Utility Expenses | 82,000 |
|
Rent Expenses | 57,000 |
|
Depreciation Expenses | 12,000 |
|
Insurance Expenses | 22,400 |
|
Selling Expenses | 28,000 |
|
Total | 1,260,000 | 1,260,000 |
Additional Information:
- Inventories as at 31 December 2018:
RM
Raw materials | 2,500 |
Work in process | 10,000 |
Finished goods | 7,500 |
- Utility, rent and depreciation expenses for factory and office are allocated as below:
| Factory | Office |
Utility Expenses | 80% | 20% |
Rent Expenses | 80% | 20% |
Depreciation Expenses | 90% | 10% |
Insurance Expenses | 90% | 10% |
REQUIRED:
- Prepare a Statement of Cost of Goods Manufactured for the year ended 31 December 2018 for MR Manufacturing.
- Differentiate between conversion and prime cost.
- Differentiate between product cost and period cost.
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