2 The budgeted fixed manufacturing overhead is RM100000 each month 3 The

2 the budgeted fixed manufacturing overhead is

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2. The budgeted fixed manufacturing overhead is RM100,000 each month. 3. The variable production overhead per unit is RM250. 4. The selling price per unit is RM510. Required: a. Calculate the sales, production and ending inventory of finished goods (all in units) for the month of January and February 2016. (4 marks) b. Prepare a Profit and Loss Statement using the marginal costing method for the month of January and February 2016. (12 marks) c. Comment on the net profit calculated in (b) above with the net profit reported under absorption costing method. (2 marks) d. Reconcile the marginal costing net profit with the net profit reported under the absorption costing method for the month of February 2016. (2 marks) (Total: 20 marks)
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5 QUESTION 5 [MAF451 DEC 2018] Bukit Melawati Sdn Bhd produces special medicine called “Doc away”. Based on its good reputation in the market “Doc away” is currently sold at RM40.00 and normally being produced at 40,000 units per year. The following information relates to its operation for the year ended December 2018. Variable cost per unit: RM Direct material 6.00 Direct labour 5.00 Manufacturing overhead 2.00 Selling and distribution 3.00 Administration 2.00 Fixed costs per year: RM Manufacturing overhead 80,000 Administration 30,000 Selling and distribution 9,000 Opening stock 4,000 units Closing stock 1,000 units Production 36,000 units Total budgeted fixed manufacturing overhead for the year is RM80,000 and absorbed based on units basis. Required: Prepare the Profit Statement using both Marginal and Absorption costing method for the year ended December 2018. (Total: 15 marks)
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