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this is cost and management accounting, please help me solve these answer as soon as possible Question 4 Supreme Sdn. Bhd. (SSB) produces a product
this is cost and management accounting, please help me solve these answer as soon as possible
Question 4 Supreme Sdn. Bhd. (SSB) produces a product called MXO. It has provided the following information related to MXO for October 2021: Production volume Quantity sold Opening inventory Selling price Direct materials Direct labour Variable production overheads Variable selling overheads Fixed selling overheads 80,000 units 76,000 units 4,000 units RM120 per unit RM 14 per unit RM20 per unit RM8 per unit 5% of sales value RM432,000 Additional information: 1. The fixed production overheads absorbed of RM40 per unit is calculated based on a normal monthly activity of 88,000 units. The actual fixed production overheads are the same as the budgeted amount. 2. Required: (a) Prepare the income statement for the month of October 2021 using: (i) marginal costing principle; (8 marks) (b) (ii) absorption costing system. (5 marks) Prepare a statement to reconcile the profits for the month of October 2021 in part (a) above. (2 marks) Explain THREE (3) reasons why the marginal costing principle is not suitable to be used in the hospitality industry. (6 marks) (c) (d) Explain TWO (2) reasons why absorption costing is not suitable in decision making. (4 marks) Step by Step Solution
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