QUESTION 2 (16 MARKS) A. A number of cost and measures of activity are listed below: Cost Descriptions Cost of heating a hardware store Windsheild wiper blades installed on autos Possible Measure of Activity RM Fixed/Variable at an auto assembly plant 3. Cost of tomato sauce used at a pizza shop Cost of shipping bags of fertilizer to a customer at a chemical plant Number of autos assembled Pizzas cooked Bags shipped Cost of electricity for production equipment at the shoe manufacturer Cost of renting production equipment on a monthly basis at a shoe manufasturer Cost of vaccine used at a clinic paonpoad saoys Shoes produced Vaccines 8. Cost of sales of hardware store 6. Receptionist's wages at dentist's office 10 Salary of production manager at a snowboard manufacturer administered Sales in RM Number of patients Snowboards paonposd Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed. Put your answers in the column provided. (5 marks) B. A number of cost are listed below: ANSWER Cost Objects A particular personal computer A particular residential area Cost Descriptions Supervisor's wages in a computer manufacturing facility 2 Salary of president of a residential construction company Cost of tongue depressors used in an outpatient clinic at a hospital The outpatient clinic The auto repair shop 4. Cost lubricant oil used at the auto repair shop of an automobile dealer 5. Manager's salary at anhotel run by a chain of hotels A particular hotel poom anos oj pasn smaos jo so) A particular yacht trim in a yacht manufacturer Accounting professor's salary The Accounting Department Page 5 of 8 QUESTION 2 (16 MARKS) Nana Corporation, a manufacturing company, produces a single product. The following information has been taken from the company's production, sales, and cost records for the just completed year. Production in units Sales in units Ending finished goods inventory in units Sales 11,600 ? 1,200 nut RM520,000 Costs: 000,0 Direct labor Raw materials purchased Manufacturing overhead Selling and administrative expenses RM36,000 RM192,000 RM120,000 RM152,000 000,0 000,EE Beginning of the year End of the year Inventories: 000.0 Raw materials Work in process Finished goods RM8,000 RM20,000 RM12,000 RM16,000 0000 Nil 000 The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is RM50 per unit. Required: a) Prepare a schedule of cost of goods manufactured for the year. (8 marks) b) Prepare the income statement for the year. (8 marks)