Topic: Cost Accumulation systems

BMMZOIS MANA CEMENT AC COUNTING I QUESTION 2 (30 MARKS: 72 MINUTES) A. Nazra Sdn Bhd (N SB) manufactures modern sculpture in southern areas and the price per unit is RM60. Currently, NSB uses absorption costing and the manager is considering to change the reporting method to variable costing. Thus, he asks the accountant to analyze the differences by comparing both methods. To accomplish the tasks, the accountant relies on some information below: Production ............................................ 60,000 units Beginning nished goods inventory ............... 30,500 units Sales ................................................... RM 4,800,000 Direct materials ....................................... RM1,100,000 Direct labor ........................................... RM540,000 Variable manufacturing overhead .................. RM310,000 Variable selling and administrative expenses RM700,000 Fixed manufacturing overhead ..................... RM450,000 Fixed selling and administrative expenses ........ RM700,000 REQUIRED: Calculate ending nished good inventory (in RM) using: (a) Absorption costing (8 Marks) (b) Variable costing (7 Marks)