[AA025 PROGRAM “SMART ACCOUNTING” SEM 2]] SESSION 2021/2022

PSPM 2012 / 2013

Walitputih Sdn Bhd (WSB) is a luxury cabinet producer. In January 2013, WSB has
produce 40 units of cabinets. WSB’s ending inventory for January 2013 are 10 units.
Sales price per unit is RM40,000. WSB has 20 units of cabinet as opening inventory in
2013. Estimated overhead cost equals to actual overhead cost.

The following information are for January 2013 :

(RM)
Direct material 545,000
Direct labour 336,000
Variable manufacturing overhead 127,000
Fixed manufacturing overhead 128,000

Variable selling expense :

Commission per unit 500

Fixed selling and administrative expense :

Advertisement 40,000
Delivery 60,000
Salaries 100,000
Depreciaton 12,000
Insurance 22,000

REQUIRED :
i. Calculate cost per unit using Absorption Costing and Marginal Costing method.
[4m]
ii. Calculate ending inventory value using Absorption Costing and Marginal Costing
method. [2m]
iii. Prepare an Income Statement for January 2013 using Absorption Costing and
Marginal Costing method. [10m]
iv. Prepare a reconciliation of net profit. [2m]

1
 [AA025 PROGRAM “SMART ACCOUNTING” SEM 2]] SESSION 2021/2022

PSPM 2014/2015

D’rine Chanteque Sdn Bhd (DCSB) is producing various types of women dresses.
Selling price per unit of dress is RM120. DCSB estimated the production and sales for
dress is 108,000 pair for the year 2015. These are all the costs related to produce a pair
of dress :

Items RM
Direct materials 24
Direct labour (RM11 per hours) 11
Variable manufacturing overhead 10
Fixed manufacturing overhead 25
Total production cost per pair 70

Additional information :
Administrative Fixed cost is RM36,000 per year and the commissions expenses is 5%
on sales.

These are production and sales information for the month of January and February
2015 :

Items January Ferbuary

Production (units) 9,000 7,000
Sales (units) 7,000 8,000

DCSB is using normal costing system.

REQUIRED:
i) Calculate the product cost per pair of dress using absorption costing method and
marginal costing method. [4m]
ii) Prepare the income statement for the month ended 28 February 2015 using
method :
a) Absorption Costing [7m]
b) Marginal Costing [7m]
iii) Prepare profit reconciliation for both methods. [2m]

2
 [AA025 PROGRAM “SMART ACCOUNTING” SEM 2]] SESSION 2021/2022

PSPM 2015/2016

Kaswari Enterprise (KE) is producing and selling a can food product. Here is the
information on sales and production for KE for the month of January and February
2016:

Items January February

Sales 16,000 units 12,000 units
Productions 16,000 units 16,000 units
RM RM
Sale Price per unit 160 160
Variable cost per unit :
Direct materials 32 32
Direct labour 32 32
Manufacturing Overhead 16 16
Fixed Manufacturing Overhead 180,000 180,000
Fixed sales and administration 96,000 96,000
expenses

KE is using production units as a basis to absorp fixed manufacturing overhead.

Production units estimated at 16,000 units each month.

REQUIRED:
i) Calculate product cost per unit using absorption costing method and marginal
costing method. [4m]
ii) Prepare KE Income Statement for the month ended 28 February 2016 using
absorption costing method and marginal costing method. [7½ m]
iii) Reconcile the net profit gain in a) ii) using absorption costing method and
marginal costing method. [1½ m]

3
 [AA025 PROGRAM “SMART ACCOUNTING” SEM 2]] SESSION 2021/2022

PSPM 2016/2017

These are production information of Chempaka Sdn Bhd for the month of March :
Units
Opening Inventories 500
Production 4,100
Sales 4,300
Ending Inventories 300
RM
Sales Price 158
Variable cost per unit :
Direct materials 33
Direct labour 60
Manufacturing Overhead 5
Sales and Administration 9
Fixed Costs :
Manufacturing Overhead 94,300
Sales and Administration 47,300

REQUIRED:
Calculate cost per unit using absorption costing and marginal costing. [4m]

4
 [AA025 PROGRAM “SMART ACCOUNTING” SEM 2]] SESSION 2021/2022

PSPM 2017/2018

Bomerang Enterprise is a ladies’ handbags manufacturer, which are marketed all over
Malaysia. Bomerang Enterprise uses normal costing system. The following are
estimation information for factory overhead costs and annual production in 2017:

Variable factory RM42,000

overhead
Fixed factory overhead RM84,000
Production volume 42,000 units

The actual data for Bomerang Enterprise throughout year 2017 are as follows:

Direct materials RM12 per unit

Direct labor RM6 per unit
Variable factory overhead RM1 per unit
Fixed factory overhead RM85,000 per year
Selling price RM30 per unit
Variable sales and RM2 per unit
administration
Fixed sales and administration RM160,000 per year
Beginning inventory 4,000 units
Production volume 43,000 units
Sales 42,000 units
Ending inventory 5,000 units

REQUIRED:
i) Calculate the product cost per unit using absorption costing method and
marginal costing method.
[5m]
ii) Prepare statements of profit or loss for the year ended 2017 using absorption
costing method and marginal costing method.
[10m]
iii) Reconcile net profit difference for both methods.
[2m]