QUESTION 3

The management of astana idaman manufacturing company is analyzing the operating results for 2015, for the purpose of evaluating the operational efficiency and performance of the factory supervisor. The company's accountant provides the following production information:

	RM
inventory of ready goods, 1/1/2015	120000
Cash	140000
account not yet received	90000
accounts payable	40500
direct labor	300000
factory depreciation	5000
President Salary	50000
sales commission	12000
Sales revenue	930000
raw material inventory, 1/1/2015	4000
purchase of raw materials	167500
Raw material inventory, 31/12/2015	8000
Factory utilities	20000
used factory supplies	6000
work inventory in progress, 1/1/2015	12000
work inventory in progress, 31/12/2015	10000
salary spending	36000
Factory tax	3000
Insurance spending	5000
inventory of ready goods, 31/12/2015	105000

Additional Information:

1. 40% of the salary expenditure is for factory supervision and the rest is for office

2. 50% of the insurance expenses are for offices and factories respectively

BE REQUIRED:

a) Prepare a statement of goods at the factory for Astana Idaman Manufacturing Company for the year ended 31 December 2015

b) Prepare an income statement for Astana Idaman Manufacturing Company for the year ended 31 December 2015

c) With reference to question 3 (a), calculate the following costs:

i. prime cost and

ii. conversion costs