Question

QUESTION1 A. Listed below are various costs that are found in several organizations: i. Flour and sugar used in a bakery. i. Depreciation of machinery in a furniture factory ili Axles used in producing lorry in a lorry plant v. Insurance for office building. Required: Classify the above costs in accordance with: a. Behaviour: Variable or fixed with respect to number of units sold. 4 marks) 4 marks) B. SedapAiskrimis a manufacturer of ice-creams such as Sedap Durian, Sedap Strawberry b. Function: Production, administrative or selling and distribution cost and Sedap Mangga. Below are the costs incurred by the company for September 2018 Cost Item Cassava Flour Sugar Other direct materials The Wages of production workers 30bags at RM50 per bag 180 bags of sugar at RM100 per bag RM11,100 RM1,500 per worker per month for 10 workers RM2,000 per month RM2,000 per month RM10,000 per month Supervisor's salary Depreciation expense of machinery Administrative expenses Required Prepare a cost statement presenting the prime cost, total production cost and total cost for the month of September 2018 (12 marks) (Total: 20 marks) CONFIDENTIAL

Answer 1

The question does not seem to be a Exams or Quiz (to take care) :

Q1)
A.
	a. Behaviour wise classification	b. Function wise classification
i. Flour and sugar used in a bakery	Variable	Production
ii. Depreciation of machinery in a furniture factory	Fixed	Production
iii. Axles used in producing lorry in a lorry plant.	Variable	Production
iv. Insurance for office building	Fixed	Administrative
B. Prime, Production and Total cost for the month of Sept 2018 :
	Amount RM
Direct Material :
Cassava Flour 30*50	1500
Sugar 180*100	18000
Other Direct Materials	11100
Direct Wages (1500 *10) :	15000
Prime Cost =	45600
Production Overhead - Supervisor's salary	2000
Depreciation Exp of machinery	2000
Total Production Cost=	49600
Administrative expenses	10000
Total Cost	59600