Below are the costs for the month of April 2021 for Cemerlang Sdn, Bhd

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Below are the costs for the month of April 2021 for Cemerlang Sdn, Bhd.

 

	RM
Raw material used	20,000
Factory operators wages	20,000
Rental	10,000
Utilities	5,000
Insurance for factory	2,000
Administration manager’s salaries	6,000
Carriage inwards for raw materials	1500
Salaries for delivery van’s driver	3,000
Indirect labour cost	13,000
Advertising costs	7,000
Costing clerks’ salaries	3,000
Bought shelves for administration office	15,000
Revenue	110,000

 

Notes:

 

1. Apportion the cost of rental based on the following percentage: Production overhead 25%, Administration overhead 25%, Selling overhead 25% and Distribution overhead 25%.

 

1. Utilities will be apportioned based on the following percentage: Production overhead 50%, Administration overhead 20%, Selling Overhead 10% and Distribution overhead 20%.

 

Required:

 

Prepare the operating statement for the Cemerlang Sdn. Bhd. [Total: 15 marks]

 

Question 4

 

1. Below are the costs and production volume of Aunty Annie Bakery Sdn. Bhd. during the months of April and May 2021.

 

Month	March	April	May
Units	15,000	25,000	35,000
Material costs	30,000	50,000	70,000
Insurance	3,000	3,000	3,000
Power	23,000	38,000	53,000
Depreciation – equipment	5,000	5,000	5,000
Advertising costs	16,000	26,000	36,000
Indirect labour	60,000	100,000	140,000
Warehouse costs	8,000	13,000	18,000

 

Required:

 

1. Analyse the costs according to their behaviour. [9 marks]

 

1. Predict the costs for the month of June when 50,000 units will be produced.

[6 marks]

[Total: 15 marks]

Question 5

 

The following information are the information for Sapphire Enterprise.

 

Delivery period	2 to 4 weeks
Maximum consumption	400 units
Minimum consumption	120 units
Units required per annum	20,000
Ordering cost	RM20
Annual cost of carrying a unit in stock	RM5

 

You are required to calculate for each component:

 

1. Economic order quantity [2 marks]

 

1. Reorder level [2 marks]

 

1. Minimum stock level [3 marks]

 

Maximum stock level [3 marks]