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Polytechnic Kota Bharu Commerce Department Dpa30073 Cost and Management Accounting 1 Practical Exercise 2 (Clo2, Plo3, P3)

The document provides information and questions for two practical exercises in cost and management accounting. Exercise 1 provides cost information for Berjaya Plastic Company and asks students to calculate product costs using marginal and absorption costing and construct income statements for the company using both methods. Exercise 2 provides cost and production information for Nazrin Company and asks students to calculate product costs using absorption costing, determine if overhead is over or under absorbed, and construct an income statement using absorption costing.

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402 views2 pages

Polytechnic Kota Bharu Commerce Department Dpa30073 Cost and Management Accounting 1 Practical Exercise 2 (Clo2, Plo3, P3)

The document provides information and questions for two practical exercises in cost and management accounting. Exercise 1 provides cost information for Berjaya Plastic Company and asks students to calculate product costs using marginal and absorption costing and construct income statements for the company using both methods. Exercise 2 provides cost and production information for Nazrin Company and asks students to calculate product costs using absorption costing, determine if overhead is over or under absorbed, and construct an income statement using absorption costing.

Uploaded by

syahirah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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POLYTECHNIC KOTA BHARU

COMMERCE DEPARTMENT

DPA30073 COST AND MANAGEMENT ACCOUNTING 1

PRACTICAL EXERCISE 2 (CLO2 , PLO3, P3)

QUESTION 1

Berjaya Plastic Company produces and sell plastics bottles. In December 2021, it produced 30,000
units and sold 25,000 units of the bottles. The following information are available for the year ended
31 st December 2021:

RM

Selling price per unit 40

Direct materials cost per unit 6

Direct wages per unit 9

Variable manufacturing overhead per unit 2

Variable selling expenses per unit sold 1

Fixed manufacturing overhead per year 150,000

Fixed selling and administrative costs per year 75,000

You are required to:

a) Display total product cost per unit using Marginal Costing and Absorption Costing
(10 marks)

b) Construct the Income Statement for Berjaya Plastics Company using Marginal Costing and
Absorption Costing Method
(15 marks)
QUESTION 2

Nazrin Company started business on 1 January 2014. The company produced furniture components
and sold it at RM58.00 each unit. On 2015, the actual production of the company is 125,000 units
and 112,000 units were sold during the year. Opening stock was 5,000 units.

Factory cost and administration expenses for year 2015 is as below:

Fixed Cost Variable Cost


RM RM
Direct material - 3.90 per unit
Direct labour - 4.65 per unit
Production overhead 700,000 4.95 per unit
Selling expenses 70,000 1.00 per unit
Administration expenses 90,000 -

The budgeted production overhead is RM825,000 , budgeted production is 150,000 units.

You are required to:

a) Display total product cost per unit under Absorption Costing


(5marks )

b) Display the over or under absorbed of overhead

(5marks )

c) Construct the Income Statement of Nazrin Company using the absorption costing method

(15 marks)

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