7. 'Purchases' include goods valued at RM1,040 that were withdrawn by Azwin for her own personal use. Required: a) Prepare Income Statement for the year ended 31 December 2021 b) Prepare Statement of Financial Position as at 31 December 2021 (15 marks) (10 marks) (Total: 25 Marks) Question 3 Meat Company produces one of the best sausage products in Damansara Utama. The company's controler used the account-classification method to compile the following information. Required: a) Briefly explain 'fixed cost' and 'variable' cost? (2 marks) b) classify each cost item as variable, fixed or mixed cost. a. Depreciation schedules revealed that monthly depreciation on buildings and equipment is RM19,000. b. Inspection of several invoices from meat packers indicated that meat costs the company RM1.10 per sausage produced. c. Utiilty bills revealed that the company incurs utility costs of RM4,000 per month plus RM0.20 per sausage produced (3 marks) 7. 'Purchases' include goods valued at RM1,040 that were withdrawn by Azwin for her own personal use. Required: a) Prepare Income Statement for the year ended 31 December 2021 b) Prepare Statement of Financial Position as at 31 December 2021 (15 marks) (10 marks) (Total: 25 Marks) Question 3 Meat Company produces one of the best sausage products in Damansara Utama. The company's controler used the account-classification method to compile the following information. Required: a) Briefly explain 'fixed cost' and 'variable' cost? (2 marks) b) classify each cost item as variable, fixed or mixed cost. a. Depreciation schedules revealed that monthly depreciation on buildings and equipment is RM19,000. b. Inspection of several invoices from meat packers indicated that meat costs the company RM1.10 per sausage produced. c. Utiilty bills revealed that the company incurs utility costs of RM4,000 per month plus RM0.20 per sausage produced