Enak Kering Bhd. is a dried food manufacturing company situated in Kubang Pasu, Kedah. The company...

 

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Enak Kering Bhd. is a dried food manufacturing company situated in Kubang Pasu, Kedah. The company is making profit even during the COVID-19 pandemic in year 2020. The high- quality products together with good management style help to increase Enak Kering's sale volumes. In a recent press conference, the new Chief Operating Officer (COO), Encik Salman clearly stated that he aimed to improve the management of the operation section of the business, particularly by controlling the cost of products and relevant financial activities. Some account balance for Enak Kering Bhd. for the year ended 31 July 2020 are as follows: 1 August 2019 31 July 2020 (RM'000) (RM'000) 27,000 33,000 22,500 6,000 70,200 48,000 3,000 15,000 Accounts Receivable Materials Inventory Work in Process Inventory Finished Goods Inventory Additional information: 1. Collection on account for the year ended 31 July 2020 were RM625 million. Enak Kering Bhd. has no cash sales transaction during the period. 2. Cost of goods sold was 68% of sales. 3. Direct materials purchased amounted to RM90 million. 4. Factory overhead was 300% of the cost of direct labour. REQUIRED: (a) For the year ended 31 July 2020, compute (show your workings): i) Sales revenue ii) Cost of goods sold Cost of goods manufactured Direct materials used Direct labour incurred Factory overhead incurred iv) v) vi) (12 Marks) (b) Elaborate FOUR (4) ways how the above information in (a) can help Encik Salman to achieve his goals. (8 Marks) Enak Kering Bhd. is a dried food manufacturing company situated in Kubang Pasu, Kedah. The company is making profit even during the COVID-19 pandemic in year 2020. The high- quality products together with good management style help to increase Enak Kering's sale volumes. In a recent press conference, the new Chief Operating Officer (COO), Encik Salman clearly stated that he aimed to improve the management of the operation section of the business, particularly by controlling the cost of products and relevant financial activities. Some account balance for Enak Kering Bhd. for the year ended 31 July 2020 are as follows: 1 August 2019 31 July 2020 (RM'000) (RM'000) 27,000 33,000 22,500 6,000 70,200 48,000 3,000 15,000 Accounts Receivable Materials Inventory Work in Process Inventory Finished Goods Inventory Additional information: 1. Collection on account for the year ended 31 July 2020 were RM625 million. Enak Kering Bhd. has no cash sales transaction during the period. 2. Cost of goods sold was 68% of sales. 3. Direct materials purchased amounted to RM90 million. 4. Factory overhead was 300% of the cost of direct labour. REQUIRED: (a) For the year ended 31 July 2020, compute (show your workings): i) Sales revenue ii) Cost of goods sold Cost of goods manufactured Direct materials used Direct labour incurred Factory overhead incurred iv) v) vi) (12 Marks) (b) Elaborate FOUR (4) ways how the above information in (a) can help Encik Salman to achieve his goals. (8 Marks)

Answer rating: 100% (QA)

a i Accounts receivable closing balance Add Collection during the year Less Accounts receivable open... View the full answer