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Riri Sdn. Bhd. uses material X to produce all the products it produces. The company currently have 1,000 liters in its warehouse at a
Riri Sdn. Bhd. uses material X to produce all the products it produces. The company currently have 1,000 liters in its warehouse at a weighted average price of RM2 per liter. A customer has placed an order for 2,000 units of Product K. Each unit of Product K requires 2 liters of material X for production. The 1,000 liters of material X currently in its warehouse can be sold for a total consideration of RM 2,100. The current replacement costs of material X is RM 2.20 per liter. Calculate the relevant costs (to the nearest RM) of material x for the customer's order. Question 2 (3 marks) Covita Sdn. Bhd. manufactures a final product, Jelena-003 that uses 2 units of subcomponent C. The company currently have 100 units of subcomponent-C in its warehouse arising from a mistaken order made by its purchaser 6 months ago for a total cost of RM 1,000. One of the company's customer recently place an order of 120 units of Jelena-003. Covita Sdn. Bhd. can purchase the subcomponent for RM 12 per unit from the only supplier of this subcomponent. However, due to implementation of Movement Control Order, the company will be charging additional RM60 in delivery costs. There are no alternative uses for subcomponent C except to be sold as scrap for RM2 per unit. Calculate the total chargeable costs (to the nearest RM) of subcomponent-C for this customer's order. Question 3 (4 marks) Erdo Sdn. Bhd. has received a once-off order to manufacture a specialised machine. The machine will require 450 hours of skilled labour to make who are currently employed by the company at RM 40 per hour. The company is currently facing of production backlogs arising from closure of the manufacturing facilities for deep cleaning as one of its staff has been tested positive for Covid-19. In order to make up for loss hours, the skilled labour will be asked to work overtime at time and a half of the existing rate to fulfil this order. However, the company will still need to pay a fine of RM500 for late delivery to the customer. Alternatively, the company can hire external employees who is estimated to have only 90% efficiency level of its workers at RM 50 per hour. Calculate the relevant labour costs (to the nearest RM) for manufacturing the specialised machine ordered by the customer. Question 4 (3 marks) A specialised machine is required for a new job to be undertaken by Pennyhouse Sdn. Bhd. The company needs to use the machine for 14 days. One option is to rent the machine for a month for RM3,000 and sublet it when it is not in use. It is estimated that the company can sublet it for 8 days for RM 100 per day. Alternatively, the company can hire the machine for 14 days guaranteed when required for RM 140 per day. Calculate the relevant cost of using the specialised machine (to the nearest RM) for the new job.
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1 To calculate the relevant costs of material X for the customers order we need to consider the following The cost of using the 1000 liters of materia...Get Instant Access to Expert-Tailored Solutions
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