MULTIMEDIA oJ UNIVERSITY STUDENT IDENTIFICATION NO MULTIMEDIA UNIVERSITY FIRST TRIMESTER FINAL. EXAMINATION, 2009/2010 SESSION BAC1624 - MANAGEMENT ACCOUNTIN (All section / Groups) 29 SEPTEMBER 2009 2.30PM-5.30PM_ G Hours) INSTRUCTION TO STUDENT 1, This Question paper consists of 6 pages with 5 Quostions only. 2. Attempt ALL questions. 3. Please print all your answers in the Answer Booklet provided.paca MANAGEMENT ACCOUNTING 1 £2009 UI it 1) MARKS) MAZ Sdn Bhd manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an etiemp: to enter a market closely related {o thal of Product W. Product W is the more complex of the two products, requiring one of direct Jabor time per unit to manufacture compared to one half hour of direct labor time of Product §. Product W is produced on an curomated production line. Overhead is curently assigned to the products on the basis of direct labor hours. The company estimated that it would incur RM500,000 in manufacturing overhead costs and produced 10,000 units of Product W and 60,000 units cf Product S during the current year. Unit cost for materials and direct labor arc: Product § (RM)__| Product W(RM) jet material 10. 2d Dirvet labor: & 12 Instructions L, Compute the predetermined overhead rate under the current method of allocation and determine the unit product cest of each product for the current year? (5 marks) 2, The company’s overhead costs can be attributed o four major activities. These activities and the amount of overhead cost attributable to cach for the current yearare given below: Estimated | Expected Product Activily [Total Overhead i Activity Cost Pools Cosis (RM) | $ w Machine setups required 000 1,200 2,000 ‘Purchase orders issued 43,500 100 600 | Machine hours required 104,000 | 3,000 10,000 13,000 Maintenance requests sued | 152,000 | 860 ie 500,000 sing the data above and an setivity based costing approach; determine the unit product cost of each product for the current year. (Show two decimai places} (05 marks) (Total ; 20 marks} MMz \Paciea | MANAGEMENT ACCOENTING | 2100 Seafood Bhd uses a process costing system. The company manufactures a product that is, processed in 2 departments: Deperiment A and Depariment B. In department 4, material are added at the beginning of the process; in Department B, additional materials are added at the end of the process; in both departments conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. ‘The following table summarises the production activity and costs for Novernber. Department A Department B. Beginning invenwories: Physicat units 5,000 Corts: Transferred in - Direct materials RM16,006 Conversion Costs RM6,900 ‘Current Production: Units started 25,000 Units ransferred out 28,000 Costs: ‘Teensferted in - Direct materials RMS7,800 Conversion costs PRM95,220 Percentage completion Beginning inventory 40% Ending inventory 80% Instructions: 8,000 RM45,320 RML6,800 4 33,000 2 RM37,950 RMI28,100 50% 50% |. Using FIFO method, prepare the following for Department A; ‘a. A physical flow schedule b. An equivalent units calculation (4 marks) {4 marks) ©. Cost of ending work in process and cost of goods transferred out d. A cost reconciliation 2. Define cquivaient units and explain their role in process costing. (4 marks) (4 marks) ist the differences between weighted average method and FIFO. (4inarks) (Total: 20 marks) MZ Page of 6