C. Seligi Tuas Boxx (STB) is a local manufacturer of custom-made carrier cases for motorcycles and...

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C. Seligi Tuas Boxx (STB) is a local manufacturer of custom-made carrier cases for motorcycles and disabled person vehicles. The following information was taken from the company's accounting records for the year ended 31 December 2020. Items Marketing and promotional expenses Utilities expense Direct labour cost Depreciation expense Raw materials Sales revenue Insurance expense Indirect materials Administrative expenses Indirect labour Maintenance and repair RM 60,000 21,600 90,000 87,000 480,000 1,470,000 24,000 9,000 119,400 102,000 56,400 Sales commission Rental expense Additional information: 1. Some of the expenses are divided according to the percentage below: Administration Factory (%) (%) 70% 30% 70% 70% 50% Insurance Utilities 2. Depreciation Maintenance and repair Rental expense includes RM22,200 of office rental. 3. Inventory balances at the beginning and ending of the year 2020 were as follow: Raw materials Work in process Finished goods REQUIRED: January 1 (RM) 39,000 90,000 141,000 7,200 46,200 30% 30% 50% December 31 (RM) 46,800 67,200 129,000 (a) Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2020 (show your workings). (c) Differentiate between product cost and period cost. (10 Marks) (b) "The Covid 19 pandemic has caused businesses to be unable to continue operating the usual way. However, there are some businesses that managed to adapt to the situation by reviewing their expenses or costs of operation to remain in business although with lesser profit." Name TWO (2) types of cost and briefly explain how both can be managed based on the situation mentioned above. (2 Marks) (2 Marks) C. Seligi Tuas Boxx (STB) is a local manufacturer of custom-made carrier cases for motorcycles and disabled person vehicles. The following information was taken from the company's accounting records for the year ended 31 December 2020. Items Marketing and promotional expenses Utilities expense Direct labour cost Depreciation expense Raw materials Sales revenue Insurance expense Indirect materials Administrative expenses Indirect labour Maintenance and repair RM 60,000 21,600 90,000 87,000 480,000 1,470,000 24,000 9,000 119,400 102,000 56,400 Sales commission Rental expense Additional information: 1. Some of the expenses are divided according to the percentage below: Administration Factory (%) (%) 70% 30% 70% 70% 50% Insurance Utilities 2. Depreciation Maintenance and repair Rental expense includes RM22,200 of office rental. 3. Inventory balances at the beginning and ending of the year 2020 were as follow: Raw materials Work in process Finished goods REQUIRED: January 1 (RM) 39,000 90,000 141,000 7,200 46,200 30% 30% 50% December 31 (RM) 46,800 67,200 129,000 (a) Prepare the Statement of Cost of Goods Manufactured for the year ended 31 December 2020 (show your workings). (c) Differentiate between product cost and period cost. (10 Marks) (b) "The Covid 19 pandemic has caused businesses to be unable to continue operating the usual way. However, there are some businesses that managed to adapt to the situation by reviewing their expenses or costs of operation to remain in business although with lesser profit." Name TWO (2) types of cost and briefly explain how both can be managed based on the situation mentioned above. (2 Marks) (2 Marks)

Answer rating: 100% (QA)

a Statement of Cost of Goods Manufactured CoGM Calculations Direct Materials Beginning Raw Materials Inventory Jan 1 RM 39000 Purchases of Raw Materials RM 1470000 Total Raw Materials Available RM 390... View the full answer