Tenggiri Bhd (TB) began business at the start of the current year and maintains its accounting...

Transcribed Image Text:

Tenggiri Bhd (TB) began business at the start of the current year and maintains its accounting records on an absorption-cost basis. The following selected information appeared on the company's profit or loss statement and end-of-year statement of financial position: Profit or Loss Data: Sales revenues (35,000 units @ RM24) Gross Margin Total sales and administrative expenses RM 840,000 210,000 160,000 Financial Position Data: Ending finished-goods inventory (12,000 units) 216,0000 There is no beginning finished-goods inventory. TB achieved its planned production level for the year. The company's fixed manufacturing overhead totaled RM188,000, and the firm paid a 10% commission based on gross sales (RM) to its sales force. Required: a) Compute the number of units that TB planned to produce during the year. (2 marks) (CLO3:PLO2:C2) b) Compute the fixed manufacturing overhead per unit for TB. (2 marks) (CLO3:PLO2:C2) c) Compute TB's cost of goods sold using absorption costing. (3 marks) (CLO3:PLO2:C2) d) Compute the variable cost per unit for TB using absorption costing. (3 marks) (CLO3:PLO2:C2) e) Discuss the basic difference between absorption costing and variable costing from a product-costing perspective. (2 marks) (CLO3:PLO2:CS) ) TB starts another product under a new subsidiary, Sclar Sdn Bhd (SSB). The following data are related to sSB: Planned and actual production Sales at RM48 per unit 200,000 units 170,000 units Manufacturing costs: Variable RM18 per unit RM840,000 Fixed Selling and administrative costs: Variable RM7 per unit RM925,000 Fixed Required: Prepare SSB's variable costing income and absorption costing income. (13 marks) Tenggiri Bhd (TB) began business at the start of the current year and maintains its accounting records on an absorption-cost basis. The following selected information appeared on the company's profit or loss statement and end-of-year statement of financial position: Profit or Loss Data: Sales revenues (35,000 units @ RM24) Gross Margin Total sales and administrative expenses RM 840,000 210,000 160,000 Financial Position Data: Ending finished-goods inventory (12,000 units) 216,0000 There is no beginning finished-goods inventory. TB achieved its planned production level for the year. The company's fixed manufacturing overhead totaled RM188,000, and the firm paid a 10% commission based on gross sales (RM) to its sales force. Required: a) Compute the number of units that TB planned to produce during the year. (2 marks) (CLO3:PLO2:C2) b) Compute the fixed manufacturing overhead per unit for TB. (2 marks) (CLO3:PLO2:C2) c) Compute TB's cost of goods sold using absorption costing. (3 marks) (CLO3:PLO2:C2) d) Compute the variable cost per unit for TB using absorption costing. (3 marks) (CLO3:PLO2:C2) e) Discuss the basic difference between absorption costing and variable costing from a product-costing perspective. (2 marks) (CLO3:PLO2:CS) ) TB starts another product under a new subsidiary, Sclar Sdn Bhd (SSB). The following data are related to sSB: Planned and actual production Sales at RM48 per unit 200,000 units 170,000 units Manufacturing costs: Variable RM18 per unit RM840,000 Fixed Selling and administrative costs: Variable RM7 per unit RM925,000 Fixed Required: Prepare SSB's variable costing income and absorption costing income. (13 marks)

Answer rating: 100% (QA)

Step 1 Step 1 Given that Tenggiri Bhd started business in the current year There is no beginning fin... View the full answer