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Question E2 Clean-Soap (M) Sdn. Bhd. produces a special type of chicken sausage for its customers in Malaysia. The following information was provided by the
Question E2 Clean-Soap (M) Sdn. Bhd. produces a special type of chicken sausage for its customers in Malaysia. The following information was provided by the company for the first two months of 2019: RM 40 Per unit: Selling price Production costs: Direct materials Direct labour Variable factory overheads 10.00 6.00 2.00 Fixed selling costs per month Fixed production costs per month 60,000 54,000 Actual details for the months are as follows: January 60,000 56,000 February 65,800 Production in units Sales in units 59,600 Additional information: (i) The opening inventory on 1 January 2019 was 10,500 units. (ii) Variable selling expenses for both January and February are RM 448,000 and RM 476800 respectively. Required: Prepare an income statement for each of the two months ended 28 February 2019, using marginal costing method. (Total=10 marks)
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