White Cafe Bhd (WCB) has provided the following data for the month of May: RM Sales 280,000 Raw materials purchased 76,000 Direct labor cost 42,000 Manufacturing Overhead 77,000 Selling Expense 20,000 Administrative Expense 35,000 Inventories Beginning Ending Raw material 22,000 33,000 Work in progress 15,000 23,000 Finished goods 52,000 43,000

Required:

a) Compute the conversion cost for WCB for the month of May (2 marks) (CLO2:PLO2:C3)

b) Compute the prime cost for WCB for the month of May (3 marks) (CLO2:PLO2:C3)

c) Prepare a Schedule of Cost of Goods Manufactured of WCB for the month of May (6 marks) (CLO2:PLO2:C3)

d) Prepare an Income Statement of WCB for the month of May (4 marks) (CLO2:PLO2:C3)

e) During the month of April, the direct labor cost totaled RM13,000 and the direct labor cost was 30% of prime cost. Compute the manufacturing overhead cost if the total product cost is RM 88,000. (3 marks) (CLO2:PLO2:C4) f) A newly appointed assistant accountant has mistakenly recorded period costs as product costs. Discuss the implication of this error on recording profit for the accounting period. (3 marks) (CLO2:PLO2:C4)

g) Explain TWO (2) purposes for valuing inventory at the end of the financial year. (4 marks) (CLO2:PLO2:C2)