Topic Cost Accumulation Systems Managerial Accounting

a. Calculate unit product cost using absorption costing system.

b. Calculate unit product cost using variable costing system.

c. Prepare income statement using absorption costing system for the month of January 2021

d. Prepare income statement using variable costing system for the month of January 2021

e. Reconcile the net income calculated in (c) and (d).

QUESTION 4 (30 MARKS: 72 MINUTES) Printis Sdn. Bhd. (Printis) produces a mini tree trimmer which is suitable for household usage. Printis is in its 4" year of operation. The following data relate to the month of January 2021: Selling price RM400 per unit Marketing and administrative expense (variable) RM25 per unit Marketing and administrative expense (fixed) RM600,000 Direct materials RM120 per unit Direct labour RM50 per unit Manufacturing overhead (variable) RM20 Manufacturing overhead (fixed) RM302,500 Beginning inventory 1,500 units Units produced 13,750 units Units sold Ending inventory The company retains gross margin (GM) ratio at 47%. The total gross margin for January was RM2,632,000. Variable production costs per unit and total fixed costs have remained constant over the past several months. REQUIRED: (a) Calculate unit product cost using absorption costing system. (3 Marks) (b) Calculate unit product cost using variable costing system. (2 Marks) (c) Prepare income statement using absorption costing system for the month of January 2021. (10 Marks) (d) Prepare income statement using variable costing system for the month of January 2021. (7 Marks) (e) Reconcile the net income calculated in (c) and (d).