QUESTION 4 (20 MARKS)

Enak Kering Bhd. is a dried food manufacturing company situated in Kubang Pasu, Kedah. The company is making profit even during the COVID-19 pandemic in year 2020. The high- quality products together with good management style help to increase Enak Kerings sale volumes. In a recent press conference, the new Chief Operating Officer (COO), Encik Salman clearly stated that he aimed to improve the management of the operation section of the business, particularly by controlling the cost of products and relevant financial activities.

Some account balance for Enak Kering Bhd. for the year ended 31 July 2020 are as follows:

1 August 2019		31 July 2020
	(RM000)	(RM000)
Accounts Receivable	27,000	33,000
Materials Inventory	22,500	6,000
Work in Process Inventory	70,200	48,000
Finished Goods Inventory	3,000	15,000

Additional information:

1. Collection on account for the year ended 31 July 2020 were RM625 million. Enak Kering Bhd. has no cash sales transaction during the period.
2. Cost of goods sold was 68% of sales.

3. Direct materials purchased amounted to RM90 million.

4. Factory overhead was 300% of the cost of direct labour.

REQUIRED:

1. For the year ended 31 July 2020, compute (show your workings):

1. Sales revenue
2. Cost of goods sold
3. Cost of goods manufactured
4. Direct materials used
5. Direct labour incurred
6. Factory overhead incurred

(12 Marks)

2. Elaborate FOUR (4) ways how the above information in (a) can help Encik Salman to achieve his goals.