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The following information pertains to a year's operation of Linda & Co: Units produced 3,500 Units sold 3,100 Direct labour RM4,000 Direct materials used RM3,000

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The following information pertains to a year's operation of Linda & Co: Units produced 3,500 Units sold 3,100 Direct labour RM4,000 Direct materials used RM3,000 RM 900 RM5,000 RM2,500 Selling and administrative expenses (all fixed) Fixed manufacturing overhead Variable manufacturing overhead All beginning inventories Gross profit Direct materials ending inventory Work-in-process ending inventory RM 0 RM2,200 RM 400 RM 0 What is the cost of finished goods ending inventory under the marginal costing system? O A RM9,500 B. RM 3.8 OC. RM 400 D. RM 1084 What is the cost of finished goods ending inventory under the traditional absorption costing system? O A RM14,500 B. RM 5.8 C. RM 2,320 D. RM 1656 The cost of finished goods ending inventory makes up % of total production cost, under both systems? O A. 13% for marginal system, 16% for absorption system B. 16% for marginal system, 13% for absorption system C. 16% for both systems OD. 11,4% for both systems Would operating income be higher or lower under the marginal costing system? By how much? O A RM572 higher B. RM572 lower C. No difference OD. None of the above

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