$($Total:$15$ Marks$)$

Question $3$

A$.$ Bonika Sdn Bhd $($BSB$)$ manufactures small camping tents. BSB produced $3,000$ units during the

year. These camping tents sell for RM$150$ each. BSB had $500$ units in finished goods

inventory at the beginning of the year. At the end of the year,there were $800$ units in finished

goods inventory. The following information was supplied by its accountant:

Additional information:

Only $70\%$ of the utilities expense and $80\%$ of the insurance expense apply to factory operations. The

remaining amounts should be charged to selling and administrative activities.

Required:

a$)$ Compute prime cost, manufacturing cost and cost of goods manufactured.

b$)$ Compute cost of goods

sold.

c$)$ Prepare an income

statement.