Question E3

Question E2 Abinitio Sdn. Bhd. Is preparing monthly budgets for the next year. Some of the budget data relating to its single product for the first three months of the financial year are as follows: July August September Metres of finished product: Opening inventory Sales Production Selling price per metre Manufacturing overheads (fixed) 2,000 18,500 22,000 RM10 5,500 21,500 23,000 RM10 7,000 23,800 21,000 RM10 RM50,000 RM50.000 RM50,000 Budgeted manufacturing costs per metre are as follows. Direct materials RM2.80 Direct labour 1.20 Variable manufacturing overhead 0.50 Required: Prepare a budgeted income statement for each of the three months using marginal costing method. (Total: 15 marks) Question E3 (a) For each of the costs listed in the following table, indicate: i whether it is a manufacturing cost, if it is, indicate whether it is a direct or indirect cost ii. (if it is a non-manufacturing cost) what other type of cost it is whether it is fixed or variable. Cost Manufacturing Other Fixed or (D/I) (specify) variable (F/V) a. Vehicle fuel used by a transport company b. Woodchips used in paper manufacture c. Accountant's salary d. Night security service e. Salesperson's commission f. Flour used in producing a cake (12 marks) (b) What are TWO (2) differences between managerial and financial accounting? (8 marks) (Total 20 marks)