Minda Global Berhad manufactures and produces a type of herbal product that is sold throughout Malaysia....

 

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Minda Global Berhad manufactures and produces a type of herbal product that is sold throughout Malaysia. The cost per unit for the year 2020 is as follows: RM 1. 2. Variable Cost per unit: Direct materials Direct labour Manufacturing overhead Sales and Administrative Expenses Fixed Expenses for the year: Factory supervisors' salaries Administrative staff salaries Insurance Utilities Factory maintenance 10.50 9.50 4.00 1.20 26,000 20,000 24,000 22,000 4,000 Vehicles expenses Depreciation of Office Equipment Depreciation of Plant The activities of the company throughout the year are as follows: Beginning inventory Sales Ending inventory Selling price per unit 6,000 8,000 10,000 O unit 25,000 units 5,000 units RM40 Additional Information: Insurance and utilities are divided into 80% for manufacturing purposes and 20% for administrative/office purposes. Vehicles expenses are divided into 30% for manufacturing purposes and 70% for administrative/office purposes. You are required to: (a) Calculate the product cost per unit using variable and absorption costing methods for the year ending 31 December 2020. (b) Prepare the income statement for Minda Global Berhad using the variable and absorption costing methods. Minda Global Berhad manufactures and produces a type of herbal product that is sold throughout Malaysia. The cost per unit for the year 2020 is as follows: RM 1. 2. Variable Cost per unit: Direct materials Direct labour Manufacturing overhead Sales and Administrative Expenses Fixed Expenses for the year: Factory supervisors' salaries Administrative staff salaries Insurance Utilities Factory maintenance 10.50 9.50 4.00 1.20 26,000 20,000 24,000 22,000 4,000 Vehicles expenses Depreciation of Office Equipment Depreciation of Plant The activities of the company throughout the year are as follows: Beginning inventory Sales Ending inventory Selling price per unit 6,000 8,000 10,000 O unit 25,000 units 5,000 units RM40 Additional Information: Insurance and utilities are divided into 80% for manufacturing purposes and 20% for administrative/office purposes. Vehicles expenses are divided into 30% for manufacturing purposes and 70% for administrative/office purposes. You are required to: (a) Calculate the product cost per unit using variable and absorption costing methods for the year ending 31 December 2020. (b) Prepare the income statement for Minda Global Berhad using the variable and absorption costing methods.

Answer rating: 100% (QA)

a Calculate Product Cost per Unit Variable Costing Variable Cost per Unit Direct MaterialsDirect Lab... View the full answer