Question 3 The cost information below is related to the production activities of Mega Sdn Bhd...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 3 The cost information below is related to the production activities of Mega Sdn Bhd (MSB). MSB produced 3,000 tables in March. These tables are sold for RM200 each. MSB had 200 finished goods inventory at the beginning of March. At the end of March, there were 300 tables in the finished goods inventory. The following cost information relates to March. RM 120,000 5,000 3,000 75,000 1,500 80,000 5,000 15,000 15,500 2,500 10,000 4,500 22,500 4,500 33,700 67,500 112,500 150,000 156,000 90,000 7,000 17,500 4,000 30,000 25,000 5,500 42,500 Wood purchased Woods returned to the supplier Varnish Wages of production workers Royalties paid (monthly) Special cutter machine Special cutter machine hire-purchase rental Security guard salary Factory rent Factory cleaner salary Office rental Depreciation of plant and machinery Depreciation of factory building Factory utilities Factory supervision Sales commission Administration expenses Administration salaries Supervisor salary Accountant salaries Commission for salesman Beginning balance, raw materials Beginning balance, WIP Beginning balance, finished goods Ending balance, raw materials Ending balance, WIP Ending balance, Finished goods Required: a) Prepare a statement for the cost of goods manufactured. b) Compute the average cost of producing one unit of the table. c) Calculate the total conversion cost. (10 marks) (3 marks) (2 marks) d) Prepare a statement of profit and loss for external users Question 3 The cost information below is related to the production activities of Mega Sdn Bhd (MSB). MSB produced 3,000 tables in March. These tables are sold for RM200 each. MSB had 200 finished goods inventory at the beginning of March. At the end of March, there were 300 tables in the finished goods inventory. The following cost information relates to March. RM 120,000 5,000 3,000 75,000 1,500 80,000 5,000 15,000 15,500 2,500 10,000 4,500 22,500 4,500 33,700 67,500 112,500 150,000 156,000 90,000 7,000 17,500 4,000 30,000 25,000 5,500 42,500 Wood purchased Woods returned to the supplier Varnish Wages of production workers Royalties paid (monthly) Special cutter machine Special cutter machine hire-purchase rental Security guard salary Factory rent Factory cleaner salary Office rental Depreciation of plant and machinery Depreciation of factory building Factory utilities Factory supervision Sales commission Administration expenses Administration salaries Supervisor salary Accountant salaries Commission for salesman Beginning balance, raw materials Beginning balance, WIP Beginning balance, finished goods Ending balance, raw materials Ending balance, WIP Ending balance, Finished goods Required: a) Prepare a statement for the cost of goods manufactured. b) Compute the average cost of producing one unit of the table. c) Calculate the total conversion cost. (10 marks) (3 marks) (2 marks) d) Prepare a statement of profit and loss for external users
Expert Answer:
Answer rating: 100% (QA)
a Cost of Goods Manufactured Statement Wood Purchased 120000 Wood Returned to Supplier 5000 Varnish 3000 Wages of Production Workers 75000 Royalties P... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
Students also viewed these accounting questions
-
The information provided below is related to Class 8 assets for the current year 2020. Undepreciated Capital Cost (UCC) beginning balance: $85,000 Cost of additions: $17,000 Dispositions...
-
Finished goods inventory at the end of December is 3,000 units. Ending finished goods are equal to 30 percent of next month's sales. April 2016 sales are expected to total 16,000 units. What should...
-
Use the cost information below for Ruiz, Inc. to determine cost of goods manufactured for the year. Work in Process, January 1 $50,800 Work in Process, December 31 37,400 Total factory overhead....
-
John Black is considering to purchasing a land from Real Estate Ltd for $1,000,000. The terms of the agreement are, 10% down payment, and the balance is to be repaid at 20% interest for duration of...
-
Suppose selected financial data of Edgewater Company and The Ritter Company for 2014 are presented here (in millions). Instructions (a) For each company, compute the following ratios. (1) Current...
-
How is reducing-balance depreciation calculated?
-
What factors could cause population growth to slow as population size increases?
-
Morello Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided...
-
Exactly three years ago, Alvin purchased a 5-year, $4000 semi-annual bond with a 6,5% coupon. Today, he would like to sell the bond. However, new 2-year bonds with a comparable level of risk now...
-
(Multiple Choice) 1. In government- wide financial statements, for which activities is depreciation reported? a. Only for governmental activities b. Only for business- type activities c. For both...
-
Break-point analysis A machine to make a paper fastener has a set-up cost of $1200 and a unit cost of $0.0005 for each item. A second one has a fixed cost of $1500 but a unit cost of $0.0015 for...
-
An early major objection to the idea that the Earth is spinning on its axis was that Earth would turn so fast at the equator that people would be thrown off into space. Show the error in this logic...
-
For the continuous beam shown in figure Q2 below, A and D are known to be fixed, while B and C are roller supported. Determine the reactions and member end forces for the beam using the STIFFNESS...
-
Q.1 Explain in detail a)Define and discuss the phenomenon of influencers b)Critically discuss influencer marketing and the role it plays for marketing on social media platforms c)Identify influencers...
-
Evaluate the integral (9,8,-4) Sy dx+x dy +6 dz by finding parametric equations for the line segment from (5,4,5) to (9,8, 4) and evaluating the line integral of F = yi+xj +6k along the segment....
-
Discuss key characteristics of total quality management, lean, Six Sigma, and statistical process control methodologies. How are they similar?How are they different? Use a specific example to...
-
Suppose that a 1-year zero-coupon bond with face value $1000 sells at $940, and a 2-year zero sells at $865 with same amount of face value. You are considering to purchase a 2-year- maturity bond...
-
Suppose that A is an m n matrix with linearly independent columns and the linear system LS(A, b) is consistent. Show that this system has a unique solution.
-
Jack and Katie have five grandchildren, ages 19, 16, 15, 12, and 10. They have established Coverdell Education Savings Accounts (CESA) for each of the grandchildren and would like to contribute the...
-
Cara, Bob, and Steve want to begin a business on January 1, 2016. The individuals are considering three business formsC corporation, partnership, and S corporation. Cara has investment land with a...
-
Vincent pays $20,000 for equipment to use in his trade or business. He pays sales tax $800 as result of purchase. Must the $800 sales tax be capitalized as part of the purchase price?
-
Biologists have studied the running ability of the northern quoll, a marsupial indigenous to Australia. In one set of experiments, they studied the maximum speed that quolls could run around a curved...
-
In the swing carousel amusement park ride, riders sit in chairs that are attached by a chain to a large rotating drum. As the carousel turns, the riders move in a large circle with the chains tilted...
-
The chain on a bicycle turns the rear wheel via a gear cluster, as shown in Figure Q7.6. The gears vary in size; the smallest gear has a radius of 2.3 cm, the largest a radius of 6.0 cm. If we assume...
Study smarter with the SolutionInn App