Question 4

Perfect Furniture Berhad (PFB) specialises in living room leather furniture products. During the month of March, the company purchased RM210,000 of raw materials. Direct labour hours worked during the period were 8,000 hours. The workers were paid RM10 per hour. Direct expenses (high performance glue, etc) of RM22,000 were incurred. Manufacturing overhead for the month were RM72,000.

For the month of March, 72 units of leather furniture was sold for RM9,500 each. PFB also incurred selling costs including sales commission of RM155,000 and administration costs of RM32,000. Inventory information for the period is as follows:

	1 March 2019	31 March 2019
Raw materials inventory	RM25,000	RM45,000
Work in process inventory	RM50,000	RM24,000
Finished goods inventory	RM10,400	RM26,000

Required:

1. Determine the cost of raw materials used in production and prime costs.

(4 marks)

2. Calculate the cost of goods manufactured for the month of March 2019.

(3 marks)

3. Calculate the cost of goods sold for the month of March 2019.

(2 marks)

4. Prepare a statement of profit or loss for the month of March 2019.

(3 marks)

(Total: 12 Marks)

Question 5

Jokowi Bond Sdn Bhd (JBSB) produces a type of box which is sold for RM15 per unit. The normal annual production and sales for the boxes are 20,000 units.

The following data consist of costs incurred during the year ended 2018:

	RM
Direct material	80,000
Direct Labour	50,000
Variable selling expenses	30,000
Administrative expenses (60% variable)	60,000
Fixed manufacturing overhead	20,000

The management accountant of the company is proposing the following alternatives to increase sales for the year 2019 and to reduce the idle capacity:

1. Reducing the selling price to RM12 per unit which would lead to an estimated increase in the sales volume by 15%.
2. An increase in sales would result in an increase of direct labour cost per unit by 10%.
3. Fixed manufacturing overhead is also expected to increase to RM25,000 due to an aggressive advertising campaign planned to boost sales.

Required:

1. Calculate the total variable cost per unit and total fixed expenses for the year 2018. marks (4 marks)
2. Calculate break even unit and sales for 2018. marks (3 marks)
3. Calculate margin of safety in units and value for 2018 (3 marks)
4. Advise JBSBs management on whether they should implement the proposal outlined above for the year 2019. (Show profit comparison).

(6 marks)

Question 4 Portor Furniture Band (PFBI speciale in ing room caller tumbare products. During the month of March the many purch RM210.000 of raw reals Drbour hours worked curtg the per nd was 5003 est. Thu HTX WHIH RM10 p rar Di Hp high pHTTCH yun, w: RN22,000 H Inorrac. Manufacturing Overhead for the month were RM72,000. For the month of March 72 units oferumture was ad for RM9,50 och PFB also neurred seling costs including sales commission of RN 155.003 and admniston costs of R 2.000. Inventory intomator for the FAW Waris relinery way BU002 Bd. Required: 2) Determine the cost of raw materials used in production and prime costs. by Calculate Colfeoda menulired for the month of March 2010 (4 marke) marks) Caleals the cast of goods wol for the month of March 2019 (2 marks) Prepara alment of prorrores for the month of March 2012 mark) Total: 12 Marks Question 5 Jokowi Bond ScoBBBB Pro type of box who and sales for the bones and 20,unts. for RMS pw unit. The nor d productor The following dala w a noured during the yeande 2012 Circler acos Veribe sing excetaka Administrat ve expenses (604 variable nedan.faturo varios 20 000 The management accountant of the company is proposing the following altensthes to incresse sales for the year 2019 and 10 reduce de CAD cly. 1. Reducing the soling price to RM12 por unt which would lead to an estimated increase in the sales volume try 15% 2. An ninh Wu n ciel our play 10 Fond u ring th is a nap la inca la RM25,000 custa un aerise HEV 15 Hul Required: Calculate the stal variabc cost per unit and total fred woonses for the year 2018. b) Calwale tres n nH and wales for 2010 18 Cele mergina y u nts And Us for 2015 c) Advan JBB management on where they should implement proposal cutined above for the year 2010. (Show profi comparison) 16 mars