Question $2($FE Sem $22021/2022)$

Top Bowl Berhad is a recognized manufacturer in the bowling industry with their world class products: bowling balls, bowling shoes, bowling equipment, and bowling accessories. In making one of their most popular products, bowling balls, they use two$-$piece construction method, to produce a higher performance ball with a large and dynamic weight block. Top Bowl manufactures bowling balls through four $(4)$ processes: mixing, moulding, filling and finishing.

Top Bowl employs a process costing system for the manufacturing processes by using FirstIn$-$First$-$Out $($FIFO$)$ method. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the processes. Top Bowl's production schedule for July follows.

$\backslash$table$[[$Work in process, $1$ July,$800$ units $($conversion costs $40\%$ complete$)],[\backslash$table$[[$Units transferred into moulding department$],[$from mixing department$]],1,800$ units$],[$Units transferred out of the department,$2,300$ units$],[$Work in process, $31$ July,conversion costs $20\%$ complete$],[$Cost of beginning work in process,$\backslash$table$[[$RM$84,300($RM$23,000$ transferred in from$],[$previous departments, RM$32,400$ in$],[$materials$,$ and RM$28,900$ in conversion$],[$costs$]]],[\backslash$table$[[$Costs transferred in during the month from$],[$mixing department$]],$RM$239,800],[$Direct material costs, current,RM$61,200],[$Conversion costs, current,RM$56,780]]$

Required:

a$)$ Prepare a production report for the moulding department for July.

$(20$ marks$)$

b$)$ Give TWO $(2)$ purposes of product costing system.

$(4$ marks$)$

Question $3$

Refer to the data for Top Bowl Berhad in Question $2$ above. Assume the company uses the weighted average method of process costing.

Required:

Prepare a production report for the Moulding Department for July.