BKAL1013 A181 TUTORIAL 5

TUTORIAL 5

DUE DATE: 8 DECEMBER 2019

PART A: 10 MULTIPLE CHOICE QUESTIONS

1. Managerial accounting information:

A. Is used mainly by external users.
B. Involves gathering information about costs for planning and control decisions.
C. Is generally the only accounting information available to shareholders.
D. Can be used for control purposes but not for planning purposes

2. The three main categories of manufacturing cost are:

A. Direct material cost, direct labour and factory overhead cost.
B. Direct labor, indirect labor and overtime premiums
C. Raw materials, work in progress and finished goods
D. Raw materials, direct labour and finished goods

3. The goal of managerial accounting is to provide the information that managers need for
all of the following Except:
A. Planning
B. Control
C. Decision making
D. Review

4. Which of the following gives the three types of inventory accounts for a manufacturing
business.
A. Finished goods and Work in process
B. Raw materials & Product
C. Finished goods, Work in progress & Raw materials
D. Finished goods, Work in progress, Raw materials & Product.

5. Which of the following items appears only in a manufacturing company's financial statements?
A. Cost of goods sold.
B. Cost of goods manufactured.
C. Goods available for sale.
D. Gross profit.
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6. Costs that are incurred as part of the manufacturing process but are not clearly associated with
specific units of product or batches of production, including all manufacturing costs other than
direct material and direct labor costs, are called:
A. Administrative expenses.
B. Nonmanufacturing costs.
C. Sunk costs.
D. Factory overhead.

Use the following information about Amy Company as follows for questions 7:
RM

Beginning raw materials inventory 15,200

Beginning goods in process inventory 22,400
Ending raw materials inventory 16,600
Ending goods in process inventory 28,000
Direct labor 42,800
Total factory overhead 30,000
Raw material purchases 60,000

7. All raw materials used were traceable to specific batches of product. Amy Company's cost of
goods manufactured for the year is:
A. RM125,800.
B. RM128,600.
C. RM131,400.
D. RM137,000.

Use the following information for Questions 8 to 10:

In July, Econo Sdn Bhd purchased direct materials costing RM42, 000 and incurred direct labor
cost of RM36,000. Overhead totaled RM64,000 for the month. Information on inventories are as
follows:
1 July 31 July
Direct materials RM12,400 RM14,200
Work in process RM1,400 RM2,400
Finished goods RM6,600 RM5,400

8. What is the cost of direct materials used in July?

A. RM42,000
B. RM40,200
C. RM43,800
D. RM41,000
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9. What is the conversion cost in July?

A. RM100,000
B. RM78,000
C. RM106,000
D. RM142,000

10. What are the total manufacturing costs in July?

A. RM142,000
B. RM100,000
C. RM138,200
D. RM140,200
BKAL1013 A181 TUTORIAL 5

PART B :STRUCTURED QUESTIONS

QUESTION ONE
Business XYZ Trading provide the following information from the period ended 31 December
2019
RM
Raw materials, 1 January 2019 35,000
Work in process, 1 January 2019 13,000
Finished goods, 1 January 2019 29,000
Raw materials purchases 180,000
Direct labour 288,000
Insurance expenses 167,000
Indirect labour 55,000
Factory machine depreciation 180,000
Utilities 50,000
Selling and administrative expenses 135,000
Sales 1,000,000

At the end of period, the balance of inventories are as follows:

Raw materials 64,000
Work in process 42,000
Finished goods 33,000

The following cost are divided as follows:

Factory building Administration
Insurance Expenses 35% 65%
Utilities expenses 70% 30%

Calculate the followings:

a. Direct materials used
b. Manufacturing overhead
c. Prepare statement of cost of manufacturing and state the cost of goods manufactured
d. Prepare statement of profit or loss and other comprehensive income.

END OF QUESTIONS

TUTORIAL 5 ANSWER SHEET

BKAL1013 A181 TUTORIAL 5

DUE DATE: 8 DECEMBER 2019

Group: _______

Matric No: __________ Name: __________________________________________

PART A: 10 MULTIPLE CHOICE QUESTIONS

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5.
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BKAL1013 A181 TUTORIAL 5

PART B :STRUCTURED QUESTION