QUIZ TOPIC 7: ABSORPTION COSTING AND MARGINAL COSTING

QUIZ AA025 ACCOUNTING 2

TOPIC 7: ABSORPTION COSTING AND MARGINAL COSTING

QUESTION 1
Jingga Sdn Bhd (JSB) is a product manufacturer known as PROP which is sold for RM30 per unit. In 2023, JSB issued 67,500 units of the PROP where 49,500 units were sold. Information on production operations is as follows:
(Jingga Sdn Bhd (JSB) adalah pengeluar produk yang dikenali sebagai PROP, dijual pada harga RM30 seunit. Pada 2023, JSB telah mengeluarkan 67,500 unit PROP dimana 49,500 unit telah dijual. Maklumat berkaitan operasi pengeluaran adalah seperti berikut:)

Item	RM
Beginning inventory (Inventori awal)	0
Direct material (Bahan langsung)	472,500
Direct labor (Buruh langsung)	405,000
Variable overhead (Overhed berubah)	202,500
Fixed overhead (Overhed tetap)	270,000
Fixed selling expenses (Belanja jualan tetap)	69,600
Fixed administration expenses (Belanja pentadbiran tetap)	104,400
Sales commission per unit (Komisen jualan seunit)	3

REQUIRED:

(i) Calculate the product cost per unit based on the absorption costing method and marginal costing method.

(Kirakan kos produk seunit berasaskan kaedah pengekosan serapan dan kaedah pengekosan marginal.)

(ii) Show income statement based on marginal costing and absorption costing method for year ended 2023.

(Tunjukkan penyata pendapatan berasaskan kaedah pengekosan serapan dan kaedah pengekosan marginal bagi tahun berakhir 2023.)

QUESTION 2

Syarikat Sinar uses normal costing system to allocate overhead costs. The company's normal production is 12,000 units per year. Estimated overhead costs for a year are as follows:
(Syarikat Sinar menggunakan sistem pengekosan normal bagi memperuntukkan kos overhed. Pengeluaran normal syarikat adalah 12,000 unit setahun. Anggaran kos overhed bagi setahun adalah seperti berikut :)

Variable overhead (Overhed berubah)	RM30,000
Fixed overhead (Overhed tetap)	RM120,000

The actual operational information for 2023 is as follows:

(Maklumat sebenar operasi bagi tahun 2023 adalah seperti berikut :)

Beginning inventory (Inventori awal)	1,000 units
Unit of production (Unit keluaran)	10,000 units
Unit of sales (Unit jualan)	8,500 units
Direct material per unit (Bahan mentah langsung seunit)	RM10
Direct labor per unit (Buruh langsung seunit)	RM5
Variable overhead per unit (Kos overhed berubah seunit)	RM2.50
Fixed overhead cost (Kos overhed tetap)	RM90,000
Seling price per unit (Harga jualan seunit)	RM50
Variable selling and administrative expenses per unit (Belanja jualan dan pentadbiran berubah seunit)	RM5
Fixed selling and administrative expenses (Belanja jualan dan pentadbiran tetap)	RM85,000