Question 4 Ellias Company, a manufacturer of tennis rackets, started production in November 2017. For the preceding five years, Ellias had been a retailer of sports equipment. After a thorough survey of tennis racket markets, Ellias decided to turn its retail store into a tennis racket factory. Raw materials cost for a tennis racket will total RM23 per racket. Workers on the production lines are paid on average RM15 per hour. A racket usually takes two hours to complete. In addition, the rent on the equipment used to produce rackets amounts to RM1,300 per month. Indirect materials cost RM3 per racket. A supervisor was hired to oversee production; her monthly salary is RM3,500. Janitorial costs are RM1,400 monthly. Advertising costs for the rackets will be RM8,000 per month. The factory building depreciation expense is RM8,400 per year. Property taxes on the factory building will be RM9,600 per year. Required: i) Prepare an answer sheet with the following column headings. Product Costs Period Costs Cost Item Direct Direct Labor |Manufacturing Materials Overhead Assuming that Ellias manufactures, on average, 2,500 tennis rackets per month, enter each cost item on your answer sheet, placing the Ringgit amount per month under the appropriate headings. Total the Ringgit amounts in each of the columns. (18 marks) ii) Compute the cost to produce one racket. (7 marks) [Total : 25 marks]