FACULTY OF BUSINESS AND MANAGEMENT

MID-TERM
SEMESTER II SESSION 2021/22

DEGREE PROGRAMME

COURSE : MANAGEMENT ACCOUNTING

COURSE CODE : ACB10203
DURATION : 2 HOURS ( 9.30 am– 11.30 am)

INSTRUCTIONS TO CANDIDATES

1. Answer ALL questions.

2. Begin each answer on a new page.

3. Submit the scanned handwritten scrip through KeLIP platform.

QUESTION 1 (30 Marks)

MAJU Print Manufacturing Sdn. Bhd. Manufactures and sell high-technology printing press
each year. During 2021, half of a million units were completed and transferred to finished
goods inventory. On 31 December 2021, there were 15,000 units in work in process. These
units were 50% complete as to conversion and 80% complete as to direct materials.

Product costs are added to production throughout the manufacturing process and overhead
is applied to each product at the rate of 60% of direct labor costs. There was no finished goods
inventory on 1 January 2021. A review of the inventory cost records disclosed the following
information:

Costs
Units Materials Labor
RM RM
Work in process, 1 January 2021
(100% complete to raw material 10,000 10,000 15,500
and 80% complete as to
conversion)
Units started in production 55,000
Direct materials costs 70,600
Direct labor costs 112,800

The company adopts a weighted-average method of process costing.

Required:

a) Reconcile the number of physical units for the year 2021.

(3 marks)

b) Compute the equivalent units for material and conversion cost.

(6 marks)

c) Compute the cost per equivalent unit for materials and conversion and cost per unit.
(11 marks)

d) Compute the cost of unit transferred out and cost for ending inventory.
(10 marks)
QUESTION 2 (70 Marks)

Angsa Mas Sdn.Bhd. uses a job-order cost system and applied manufacturing overhead cost
to jobs on the basis of the cost of direct materials used in production. At the beginning of the
year 2021, the following estimates were made for the purpose of computing the
predetermined overhead rate: RM300,000; and direct material cost, RM240,000.

At the beginning of the year 2021, the balance in the inventory accounts were as follows:

Raw materials RM18,000

Work in process RM24,000
Finished Goods RM35,000

During the year of 2021, the following transactions took place (all purchases and services
were acquired are on account):

a. Raw material purchased, RM242,000.

b. Raw materials requisitioned for use in production (all direct material), RM250,000.
c. Factory utilities incurred, RM31,000.
d. Costs for salaries and wages were incurred as follows:
Direct labor RM216,000
Indirect labor RM100,000
Selling and administrative salaries RM145,000
e. Maintenance cost incurred in the factory, RM25,000.
f. Advertising costs incurred, RM80,000.
g. Depreciation recorded for the year, RM50,000 (80% relates to factory assets
, and the remainder relates to selling and administrative assets).
h. Rental cost incurred on building, RM90,000 (70% of the space is occupied by the
factory, and 30% is occupied by sales and administrative).
i. Others selling and administrative expenses incurred, RM25,000.
j. Manufacturing overhead cost was applied to jobs, RM____.
k. Cost of goods manufactured for the year, RM740,000.
l. Sales for the year (all on account) totaled RM1,000,000. These goods cost RM600,000
to manufacture according to their job cost sheets.
Required:

a) Compute the predetermine overhead rate

(2.5 marks)

b) Prepare journal entries to record the transaction for the year.

(15 marks)

c) Prepare T-accounts for inventories, manufacturing overhead, and cost of goods sold.
Compute an ending balance in each account.
(11.5 marks)

d) Is manufacturing overhead underapplied or overapplied for the year 2021? Prepare a

journal entry to close any balance in manufacturing overhead account to Cost of Goods
Sold.
(3 marks)

e) Prepare a Schedule Cost of Goods Manufactured for the year ended 31 December
2021
(16 marks)

f) Prepare the company Statement of Profit or Loss for the year ended 31 December
2021.
(11 marks)

g) Job S07 was one of the jobs started and completed during the year. The job required
RM4,200 in direct material and 300 hours of direct labor hours at a rate of RM8 per
hour. Compute the selling price per unit for Job S07, If the job contained 500 units and
the company billed at 60% above the unit product cost on the job cost sheet
(8 marks)

h) Why are not actual manufacturing overhead costs traced to jobs just as direct materials
and direct labor costs are traced to jobs?
(3 marks)

END OF QUESTION PAPER

 FACULTY OF BUSINESS AND MANAGEMENT

MID-TERM
SEMESTER II SESSION 2021/22

DEGREE PROGRAMME

ANSWER BOOKLET
COURSE : MANAGEMENT ACCOUNTING
COURSE CODE : ACB10203
MATRIC NO. : ..........................................
PROGRAMME : ..........................................

QUESTIONS MARKS
1
2

TOTAL MARKS / 100

CARRY MARK / 20 %