ABFA 1023 FUNDAMENTALS OF ACCOUNTING DIPLOMA IN ACCOUNTING YEAR 1 SEMESTER 2 (2013/2014) COURSEWORK 1

Amy Yap Pui Eng Lim Ee Vian Kee Ai Sing Goh Sze Xiang Ooi Wei Xin

:13WBD07736 :13WBD00681 :13WBD00841 :13WBD05779 :13WBD06199

TUTORIAL GROUP DAY TIME DATE OF SUBMISSION

: DAC 8 : TUESDAY : 08.00AM-9.30AM : 29-10-2013

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Table Of Contents Declaration of plagiarism statement duly signed.

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Marking schemes Safe assign plagiarism report Introduction Content : Type of inventories Process of manufacturing Valuation of Inventories Closing Inventories conclusion appendix references

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UPA CORPORATION BERHAD

Introduction This business started since 1975 in general printing (www.upa.com.my). Today, it have been diversified into three activities. The main activity is UPA Press Sdn Bhd that is involving manufacturing of diaries and other products in paper. Besides that, UPA Machinery Sdn Bhd is manufacturing in leading brand of printing machine. The third manufacturings are packaging material in rigid films by Macro Plastic Sdn Bhd. (http://www.upa.com.my/index.php?option=com_content&view=article&id=50&Itemid=59). The main two factories that are located at Kuchai Lama, Kuala Lumpur are supporting in manufacturing of diaries and other paper product. Other than that, there are two more factories that is located at Seri Kembangan, Selangor to manufacturing on other product (http://www.upa.com.my/index.php?option=com_content&view=article&id=46&Itemid=54) . The chairman of this company is Mr.Chua Ah Lak. He is an independent and executive director of UPA Corporation Berhad on 3 January 2005. Mr. Kok Kam Moi was appointed as managing director on 6 January 1997. Mr. Chua Ngeun Lok is the executive director on 6 January 1997. He is the co-founder of UPA Group with Mr. Kok Kam Moi (http://www.securities.com/Public/companyprofile/MY/UPA_Corporation_Bhd_en_1663636.html). 1) Type of inventories a) Diaries b) Paper c) Reconditioning and refurbishment machine d) Rigid films (http://www.upa.com.my/index.php?option=com_content&view=article&id=50&Itemid=59). a)Raw material to make diaries Raw materials inventory is the products we bought to purchase a final goods / services. The company will buy papers and the papers are raw material to make a product. Next type of inventory is in the process inventory that is a part of companys finished goods waiting for completion and eventual sale for the value of these items example is the cover of a book, the company will finish the cover page at first and store it for waiting next process. The last type of inventory is finished goods that ready to sell to customers or ready to use that is a completed book.

b) Raw material to produces paper Raw materials for making paper are wood pulp or fiber from wood, water, recycled newspaper, recycled cloth, vegetable thing bleaches and daywear, fillers such as chalk, soil, retention aids, fluorescent whitening agents, titanium oxide, and sizings and starch. The finished goods of paper are produced. (http://www.madehow.com/Volume-2/Paper.html) (http://en.wikibooks.org/wiki/Papermaking/Raw_materials) c) Raw material to produces rigid film There are 3 types of inventories that are raw materials, working in progress and finished goods. The raw materials for making rigid firms are involved solid and liquid. The company will use the raw material to working in progress example is the process of calendaring, extrusion, coating and laminating, stretching and orienting. The work in progress is rubber roll. After that, the finals good of rigid firms are produced. (http://www.kpfilms.com/en/advantage/productionprocess.asp) 2) Process of manufacturing the goods. a) Process of manufacturing rigid films product The process of plastic product can divided to two main processes that is production and converting process. The process of production divided into calendaring and extrusion. Calendaring is a process of manufacture of large-volume and high-quality products, mainly vainly (PVC) film and sheet. In calendaring process, the polymer is melted and compounded with heat and pressure in kneader. Then, the film is formed by pressure of the calendaring rolls. Special features of film are defined by formulation and processing conditions. The typical calendaring line with following equipment. The raw material bulk handling and mixing unit is from production of film, the ingredient included both solid and liquid raw material. Solid are conveyed pneumatically from silos into bins, weighed in batches and dropped into high-speed mixer. Liquid are metered into the mixer by piston pump or other volumetric metering devices. Next is the compounding and calendaring feeding process is compounding is the done in mixers. The dry blend is force-fed into extruder. Uniform compounding provides for minimal heat history and persistent feed rate, color, gauge and surface. Furthermore, the calendaring configuration process is the film industry distinguishes between two dominant calendar types, L and Inverted L with roll configurations from 4-7 rolls. The rolls have driven and temperature controlled. The temperature and speed of the rolls influence the properties of calendared film. The tempering rolls or embossing

unit process is the firm passes between an embossing rolls and cooled rubber roll. The embossing unit is used to imprint special features on the firm. A variety of surfaces applied to the embossing roll to generate a desired surface effect. Next is winding station. The winding station includes cutting devices for edge trimming and in-line sitting of rolls. After that, continue with the process of extrusion. Extrusion is a process that converts plastic powder or into a uniform melt and forces this melts though a die, which cooling yields a desired shape. The end products are custom profiles, sheet, pipe, tubing, fibers, film, coatings and pellets. Moreover is cast extrusion. Casting of film is the continuous process by which a thermoplastic material melted and extruded through a flat die into a chill roll, where is quenched and re-solidified. The resulting film is stripped from the chill roll and wound for further processing and converting. Apart from them, is cast co-extrusion. Cast co-extrusion is a process joint distinct polymer into one film in order benefit from their different mechanical and physical lengths. Then is the blown film extrusion process. Blown film normally extruded vertically in a tubular shape that cools, collapses, and wind up as a thin film. The last process is brown co-extrusion. Blown co-extrusion is a growing field for products with more than one material. It requires multiple extruders and specialized die system to bring these layers together. There is two more process to go after production process. The next process is by converting. Converting has separated into two small processes that are coating & laminating and stretching process. The process coating & laminating process are two or more material bonded together. The basic method that used in this process is fusion, wet combining and heat reactivation. The last process of this product is stretching. This used to production of shrink films. (http://www.kpfilms.com/en/advantage/productionprocess.asp)

3) Type of valuation method that company using. The FIFO method is state that the first products to be get are the first to be given off. So the UPA Corporation Berhad is using the first-in-first-out (FIFO) method to count the inventories of the company. The first-in-first-out principles are used to assume on the cost of raw materials, work-in-progress, manufactured inventories, printing and other machines held for trading which are measured at the lower of cost and net realizable value. ... (show in page of 34 in the annual report of 2012 of UPA Corporation) The cost of inventories is based on the first-in first-out method (FIFO) and involved expenditure incurred in obtaining the inventories and bringing them to their existing location and

condition. In the instance of work-in-progress and manufactured inventories, cost involved an appropriate share of production overheads based on normal operating capacity. In the case of printing and other machines held for trading, cost consists of the actual value paid for each individual inventory and is determined on a specific identification basis. The advantages of FIFO is practical because it builds on the assumption are given off in the sequences which goods they get. Moreover, values of inventories also easy to count and build on real price paid. Apart from this, when the price is falling, this method also is better use. The disadvantages of this method are raw materials use in production are use incipient price in manufacturing business. The selling price of the finished good also unpractical. If the price raise, the actual profits will being low. (http://www.preservearticles.com/201103244656/advantages-and-disadvantages-of-first-in-first-outmethod-fifo.html) (http://www.upa.com.my/index.php?option=com_content&view=article&id=51&Itemid=60). (http://www.upa.com.my/) 4) The amount of closing inventories. The amount of the closing inventories in 31 December 2012 of UPA Corporation Berhad is RM 43,751,000. Shown on below table. These tables have been showed in annual report 2012 of UPA Corporation Berhad in page 42 of (http://www.upa.com.my/index.php?option=com_content&view=article&id=51&Itemid=60). (http://markets.ft.com/research/Markets/Tearsheets/Financials?s=UPA:KLS&subview=BalanceSheet). Type of Inventories Raw materials Work-in-progress Manufactured inventories Printing and other machines held in trading Machine spare parts Total of closing inventories of 31 December 2012 RM 000 23,992 912 8,230 10,396 221 43,751

Conclusion The inventories of year 2012 in UPA Corporation Berhad have increased between year 2011.This causes the sales in 2012 is more than year 2011. By the way, UPA Corporation Berhad, try to increase the production and the sales in year 2012 than the previous year. However, UPA Corporation Berhad has increased the profit. The profits in 2012 are RM 14, 246, 000 and in 2011 is RM 12, 019, 000. Therefore, the production, raw material and work-in-progress will be increase year by year. When I am doing research I learn that how to cooperate with my group mates and we have success finish our assignment. Furthermore, I also learn to run a company and produce a product have a lot of processes. My knowledge has increased after doing this assignment. This research also help us in future because this assignment let we know how a business run and their process to make the production.

References 1) (http://letthewordsflow.wordpress.com/2009/12/16/the-process-of-making-a-book/) 2) (http://www.bpf.co.uk/plastipedia/polymers/pp.aspx) 3) Lecturer note 4) (www.upa.com.my) 5) (http://www.upa.com.my/index.php?option=com_content&view=article&id=50&Itemid=59) 6) (http://www.upa.com.my/index.php?option=com_content&view=article&id=46&Itemid=54) 7) (http://www.securities.com/Public/company-profile/MY/UPA_Corporation_Bhd_en_1663636.html) 8) (http://www.upa.com.my/index.php?option=com_content&view=article&id=50&Itemid=59) 9) (http://www.madehow.com/Volume-2/Paper.html) 10) (http://en.wikibooks.org/wiki/Papermaking/Raw_materials) 11) (http://www.kpfilms.com/en/advantage/productionprocess.asp) 12) (http://www.kpfilms.com/en/advantage/productionprocess.asp) 13) (http://www.upa.com.my/index.php?option=com_content&view=article&id=51&Itemid=60) 14) (http://www.upa.com.my/) 15) (http://markets.ft.com/research/Markets/Tearsheets/Financials?s=UPA:KLS&subview=BalanceSheet) 16) (http://www.preservearticles.com/201103244656/advantages-and-disadvantages-of-first-in-first-outmethod-fifo.html)