Question

(16 marks) nit (b) Bapa & Son Sdn Bhd makes two products, the Soap and the Sabun. Information relating to each of these products for April 2019 is as follows:- Sabun RM Soap RM Nil 18,000 16,000 Nil 12,000 10,500 Opening inventory Production (units) Sales (units) Sales price per unit RM12 RM10 Unit costs Direct materials s Direct labour Variation production overhead Variation sales overhead RM 4 2 2 1 1.50 Fixed costs for the month Production costs Administration costs Sales and distribution costs 20,000 3,000 1,000 Required: (a) Using marginal costing principles, calculate the profit in April 2019. (5 marks) Calculate the estimated profit if sales has been increased to 20,000 units Soap and 14,000 units Sabun. (b) [4 marks] ot vo e

Answer 1

		$
Sales revenue		297000
Cost of good sold( Variable cost)
Production	240000
Closing	(-22750)
Cost of goods sold		(-212250)
Contribution		84750
Fixed cost :
Production cost		(-20000)
Administration cost		(-3000)
Sales and distribution cost		(-1000)
Profit		60750

*There is no opening inventory

Calculation

Sales= (16000*12+10500*10)= 297000

Production= (18000*9+12000*6.5)= 240000

Closing=(2000*9+1500*6.5)= 27750

Variable cost : soap 4+2+2+1= $9/unit

Sabun :2+2+1+1.5=$6.5/unit

B) profit for 20000 units and 14000units

Sales revenue	380000
Variable cost	(-271000)
Contribution	109000
Fixed cost	(-24000)
Profit	85000

Sales:(20000*12+14000*10)= 380000

Variable cost : (20000*9+14000*6.5)=271000

Fixed cost = 20000+3000+1000=24000