PPT3402-1, Indivual Assingment Product, NUR AFINA DAUD

FACULTY OF AGRICULTURE
UNIVERSITI PUTRA MALAYSIA
CAMPUS SERDANG, SELANGOR
BACELOR SCIENCE OF AGRIBUSINESS
COST AND MANAGEMENT ACCOUNTING (DRURY)
PPT3402
INDIVIDUAL ASSIGNMENT: MY AGRO BILLIONAIRE DREAM
FinassTempeh
PREPARED BY:
NUR AFINA DAUD BINTI ABDULLAH
203845
PREPARED FOR:
DR. FAZLIN BINTI ALI
DATE SUBMISSION:
17TH JANUARY 2021
1|P ag e
TABLE OF CONTENT
NO. CONTENT PAGE

1.0 Acknowledge 3
2.0 Introduction 4
3.0 Company Background 5
4.0 Product Background 6-7
5.0 Objectives 8
6.0 Mission and Vission 8
7.0 Attractive and Unique 9
8.0 Sizes Market 9
9.0 Target Market 10-11
10.0 Sales Market 12
11.0 Timeline 13
12.0 Types of Cost Involves 14
13.0 Transaction 15-16
14.0 Journal 17-19
15.0 Ledger 20-24
16.0 Balance Sheet 25
17.0 Statement Profit or Loss and Comprehensive Income 26
18.0 Statement Financial Position 27
19.0 Process Costing 28
20.0 Cost Allocation 29-30
21.0 Overhead Analysis 31
22.0 Tradisional method 32
23.0 Activity-Based method 33
24.0 Variable Costing 34
25.0 Cost-Volume Analysis 34
26.0 Budget Costing 35-40
27.0 Risk 41
28.0 Opportunity of Produt 41
2|P ag e
1.0 ACKNOWLEDGEMENT
First and foremost, I feel thankful and grateful to be given a chance by god for letting us
finnish this project assignment from establishing the company to product idea generating and
finally to product manudacturing. All of the efforts had become a success when all of the
instructions were able to fulfil.
In preparation of my assignment, I had to take the help and guidance of some respected
persons, who deserve my deepest gratitude. As the completion of this assignment gave me
much pleasure, I would like to show my gratitude to Dr. Fazlin binti Ali for giving me a good
guidelines for assignment throughout numerous consultants. I would also like to expand my
gratitude to all those who have directly and indirectly guided me in do this assignment.
Many people, especially my classmates and my friends have made valuable comment
suggestions on my paper which gave me an inspiration to improve the quality od the
assignment.
3|P ag e
2.0 INTRODUCTION
FinassTempeh is a sole propriertor company. This company is focusing on

production of Tempeh which will soon to be one of the companies responsible in
supplying food product in Selangor , especially in Ampang district. Food production
is a lucrative business since this Tempeh are consumed by universal consumer and it
is cheap compared to other product food thus lower and medium income family could
afford buying it. With developing modern equipments and advanced technology.
These tempeh food products can also unite the culture of the community. for
example, the Javanese community and the Sabah community are very fond of this
tempeh-based food. this can strengthen their relationship when served and eaten
together. In addition, it can provide healthy food to adults as well as children who do
not eat or do not like vegetables. this is because tempeh contains quality and
nutritious ingredients.
With the skills of each individual in the company as well as the experience and
knowledge available while studying, this business can run smoothly. I as a manager
have issued its own start-up capital of RM400 to set up FinassTempeh and operate it
successfully and assisted by 4 employees.
With the planned sales forecast of 20% profit every month, FinassTempeh
company is confident of the success of the food products to be produced. The
management of the company is also confident in the uses and privileges of these food
products. Innovation is also done on this tempeh food product that is using various
types of beans that have never been created before on tempeh products will cause the
Company to compete with other tempeh competitors.
Finally, the business plan made will be able to help the company see the future
prospects of the organization about the new project to be released while reducing the
company's probability of incurring losses.
4|P ag e
3.0 COMPANY BACKGROUND
Business Name: FinassTempeh
Address: 88, Jalan Industri, Taman Industri Jaya, 68000 Ampang Selangor.
Telephone No: 03-3133055
Fax: 03-3133056
Email: Finass_Tempeh@gmail.com
Website: http //: www.Finass_Tempeh.com
Type of Business: Private Limited
Main Activity: Produced Tempeh
Date of business conducted: 1 November 2020
Date of business registered: 31 October 2018
No. Bank Account: 121309872678
Total business start-up capital: RM 400
This FinassTempeh business was established three years ago as a private limited
business with the method of starting your own business. FinassTempeh has its own
private building. The source of business capital is from personal savings and help from
family members.
5|P ag e
4.0 PRODUCT BACKGROUND
FinassTempeh wants to produce a product that is different from the others and for the
first time is in the market to increase the company's profit by attracting customers by
producing various tempeh variations that is by using various types of nuts .
ASPECT NOTES
Product Tempeh
Shape Square
1. Dried soybeans
2. Ragi/ Tempeh Starter / Yeast
3. Vinegar
4. Plastic packaging
Ingredients and Tools
Another nuts:
5. Lentil
6. Brown nuts
7. Sunflower seeds
8. Pumpkin seeds
6|P ag e
Tools :
1. Large bowl
2. Colander
3. Baking sheets
4. Paper towel OR clean kitchen towel
5. Mixing spoon
6. Incubator
Types of Product Food Product
1. Soak the soybeans for overnight

2. Remove dehull and wash it until clean
3. Boil the beans for about 30 minutes – 1 hours until the beans soft and
cooked
4. 80% beans cooked add vinegar
5. Dry the beans
( spread the cooked beans on the dry towel and let them dry OR use a
Process to produce blow dryer on low heat to dry the beans )
Tempeh 6. Cool the beans below body temperature
7. Mix the beans with tempeh starter
8. Fill the Tempeh into the bag and shape it and make a hole
9. Incubate the beans in about more than 24-48 hours between 85° and
90°F until the mole growth
10. Stop the fermentation ( Remove the bags from the incubator and let
the tempeh cool to room temperature. Transfer the tempeh cakes to
airtight bags or containers and store in the refrigerator up to 1 week).
Using Tempeh
(Tempeh can be eaten raw or cooked )
Method of using Tempeh
Freezing Tempeh
(To freeze the Tempeh, steam it for 20

minutes and then freeze in an airtight
container up to 3 months
7|P ag e
5.0 OBJECTIVES
a) The price cheap and everyone could afford it
b) Unite the culture of the community
c) Healthy food for adult as well as children
6.0 MISSION AND VISION
Mission
FinassTempeh company is to be a company that provides nutritious, high quality and

halal food products to produce a generation of people with noble values, identity and
great civilization
Vission
Offer the best food by always focusing on quality in every product production before
being marketed and improving the economic status of the locals.
8|P ag e
7.0 ATTRACTIVE AND UNIQUE
homemade
and free
chemical
uniquenass
of the
product
use
differents
nuts
quality
ingredients
The diagram above showed our attractive and uniqueness of my product which are
only use quality ingredients, my product use differents nuts and my product never use
chemical. Last but not least, our product is at affordable price which only costs RM2 per
pack.
8.0 SIZE MARKET
FinassTempeh market targets are focused on the population divided into end
users consisting of all family categories (80%), single (20%) and industrial users
consisting of wholesalers (60%) and schools (40%) in Ampang district, Selangor in
where it covers an area of 30 kilometers radius. The total population in the Ampang
area is about 45,698 people.
9|P ag e
9.0 TARGET MARKET
This business plans to target its services to the entire population in the following
places to all ages and government employees, private and schools earning between
RM700 to RM3000. Overall demand is made up of Malays, Chinese and Indians.
There are several target groups that have been identified that will be a major
contributor to the company's increased sales. Among them are:
Last user
➢ Single
● They are usually lazy to cook complicated things but they should always take care of their
diet.
➢ family
● Usually some family members do not eat vegetables. therefore, parents should ensure that
they provide adequate food to their family members. This tempeh can be a substitute for
vegetables because it has the same nutrients.
Share Final User
50%
family
single
80%
10 | P a g e
Industrial Users
➢ Wholesalers
● A wholesaler is an individual who carries out all activities involving the resale of a product
or service purchased for the purpose of making a profit. Tempeh is one of the food products
that will get an attractive response from consumers. With this, indirectly, the wholesaler will
reap huge profits.
➢ School
● Schools will buy Tempeh to cook and sell in the canteen. School students usually need
such nutritious food for their upbringing.
Share Industrial Users
40%
Wholesalers
School
60%
11 | P a g e
10.0 SALES TARGET
To achieve my sales target, which is 5000 pack Tempeh in a month, I had

promoted my product throught :
❖ Business card
➢ FinassTempeh business card contains name, phone number, premise

address and website as well as a selection of legumes and services offered. This card
can be a quick reference for customers to contact FinassTempeh.
❖ Printed Banner / Canvas
➢ These banners are installed in strategic areas to introduce FinassTempeh to

customers. To prevent the banner from fading or being damaged, FinassTempeh will
select a safe and suitable area.
❖ Internet
→ Blog
➢ This blog provides information on FinassTempeh products, such as price

rates and types of beans. We can also make reservations. In addition, reservations can
also be made through the FinassTempeh blog.
→ Facebook and Instagram
➢ This social media is a growing social space, FinassTempeh takes this

opportunity to promote its products. This method is not only fast and quick, but also
easy and reduces promotional costs.
12 | P a g e
11.0 TIMELINE
2/11/2020
1/11/2020 9/11/2020 15/11/2020
produce first
compAny produce produce pack
batch product
establish 1385 pack 1385 pack
1385 pack
13/12/2020 10/12/2020 05/12/2020 02/12/2020

produced produced produced produce
1385 pack 1385 pack 1385 pack 1385 units
13 | P a g e
12.0 TYPES OF COST INVOLVED
In my manufacturing process, there have types of costs involves such as direct

material or indirect material and labour costs and manufacturing overhead.
Direct material costs represent those material costs that can be specifically and
exclusively identified with a particular cost object such as my product Tempeh. For the
direct material costs, it is used to produce my Tempeh such as dried soybeans, lentil,
black beans, sunflower seed, pumpkin seed, Tempeh starter, vinegar, and banana leaf.
Indirect material costs sush as plastic packaging, sticker, tools for production ,disposable
tools and cleaning supplies which used to cleaning.
For direct labor costs, there is the salaries that pay to the 4 workers who involved
in the production from each department. Manufacturing overhead such as rental, utilities,
machinery depreciation, equipment and machine .
DIRECT MATERIAL COSTS
Direct Material Cost
Item Quantity Price/kg (RM) Price/Unit Total Price (RM)
Dried soybeans 138.5 kg 5 0.05 692.5
Tempeh Starter 15kg 6 0.02 90
Vinegar 6litre 2 0.1 12
TOTAL 0.17 794.5
The table above showed the direct material cost which I used to produced 1 unit of
Tempeh. The direct materials include dried soybeans, tempeh starter, and vinegar. My
company have plan to produce 1385 unit of Tempeh in 1 batch. So, the total direct material
cost for 1 unit/pack Tempeh is RM 0.17.
14 | P a g e
13.0 TRANSACTION
Date Transaction
2020
Oct- Opened a business by investing RM18000 by cash
21
purchased office equipment RM120 by cash
purchase indirect material RM300 by cash
23 purchased advertisement such as sticker, business card and banner RM100 by cash
25 Bought 5 unit of incubator machine for RM750 by cash. 1 unit RM150
27 Bought 3 unit of sealing machine for RM285 by cash. 1 unit RM95
30 purchased ingredient and material, dried soybeans 100kg by cash RM500
Nov- purchased ingredient and material, vinegar and tempeh starter for about RM208 by cash
01
3 received cash RM300 by selling 150 unit Tempeh
5 sold goods in cash 50 unit RM100
7 received cash RM160 by selling 80 units of Tempeh
9 purchased dried soybeans 500kg RM 2500
10 sold goods in cash 300 unit RM900
12 received cash RM3000 by selling 1500 units of Tempeh to ALI SDN BHD
15 purchased direct materials , black beans 1kg RM 9.40, sunflower seed 2kg RM31.80 and
pumpkin seed 2kg RM27.60
20 received cash RM100 by selling 50 unit of blackbeans Tempeh
received cash RM160 by selling 80unit of mix seeds Tempeh
24 received cash RM4780 by selling 2390 units Tempeh to KKK Enterprise
27 repair and maintenance by cash RM300
28 paid rent RM800 by cash
paid salaries RM4800 by cash , epf expense 11% RM528, socso expense 3% RM144
29 paid utilities RM800 by cash
2-Dec purchased direct materials lentil for abput 4 kg RM44
received cash RM280 by selling 140 units of Tempeh
4 received cash RM160 by selling 80 units of Lentil Tempeh
5 purchased direct materials , 3kg of blackbeans,pumpkin and sonflower seeds by cash
RM117.30
10 received cash RM 60 by selling 30 units of Tempeh
11 purchased dried soybeans 300kg RM1500 by cash
13 received cash RM360 by selling 80 unit of blackbeans Tempeh, 100 unit of mix seeds
Tempeh
18 received cash RM4220 by selling 2110 units Tempeh to KKK Enterprise
23 Depreciation expense:
incubator machine RM175 for 5 unit machine
sealing machine RM54.99 for 3 unit machine
office equipment RM28.25
25 received cash RM3600 by selling 1800 units Tempeh
27 repair and maintenance by cash RM300
15 | P a g e
28 paid rent RM800 by cash
paid salaries RM4800 by cash , epf expense 11% RM528, socso expense 3% RM144
29 paid utilities RM800 by cash
16 | P a g e
14.0 JOURNAL
GENERAL JOURNAL
DEBIT CREDIT
DATE ACC TITTLE/ EXPLANATION (RM) (RM)
2020
Oct-21 cash 18000
capital 18000
(opened a business by investing as a capital)
office equipment 120
indirect material 300
cash 420
(purcahsed office equipment and indirect material by cash)
23 advertisement 100
cash 100
(purchased advertisement by cash)
25 incubator machine 750
cash 750
(bought 5 units of incubator machine by cash )
27 sealing machine 285
cash 285
(bought 3 units of sealing machine by cash)
30 purchased 500
cash 500
(purchase 100kg of dried soybeans by cash)
Nov-01 purchased 208
cash 208
(purchased vinegar and tempeh starter by cash )
3 cash 300
sale 300
(received cash by selling 150 unit Tempeh)
5 cash 100
sale 100
7 cash 160
sale 160
9 purchased 2500
cash 2500
10 cash 900
sale 900
12 cash 3000
sale 3000
17 | P a g e
15 purchased 68.8
cash 68.8
(purchase blackbens 1kg, sunflowerseeds 2kg and pumpkin seed 2kg by
cash)
20 cash 100
sale 100
(received cash by selling 50 unit blackbeans Tempeh)
22 cash 1300
sale 1300
(received cash by selling 570 unit Tempeh and 80 units mix seed tempeh)
24 cash 4780
sale 4780
26 cash 740
sale 740
27 repair and maintenance 300
cash 300
(repair and mantenance by cash)
28 rent expense 800
salaries expense 4800
epf expense 528
socso expnse 144
cash 6272
(paid rent, salaries, epf an socso expense by cash)
29 utilities expense 800
cash 800
(paid utilities by cash)
Dec-02 purchased 44
cash 44
(purchase 4kg of lentil by cash)
cash 280
sale 280
(received cash by selling 140units Tempeh)
4 cash 160
sale 160
5 purchased 117.3 117.3
cash
(purchase 3kg of blackbeans,pumpkin and sunflower seed by cash)
8 cash 1400
sale 1400
10 cash 60
18 | P a g e
sale 60
11 purchased 1500
cash 1500
13 cash 360
sale 360
(received cash by selling 80units blackbeans and 100 unit mix seeds
tempeh)
15 cash 1000
sale 1000
18 cash 4220
sale 4220
23 accumulated depreciation-incubator machine 175
sealing machine 54.99
office equipment 28.22
depreciation expense 258.21
(depreciation expense for non current asset)
25 cash 3600
sale 3600
27 repair and maintenance 300
cash 300
(repair and mantenance by cash)
28 rent expense 800
epf expense 528
socso expnse 144
cash 6272
(paid rent, salaries, epf an socso expense by cash)
29 utilities expense 800
cash 800
(paid utilities by cash)
19 | P a g e
15.0 LEDGER
CAPITAL
Date RM Date RM
2020 2020
Oct-31 Balance c/d 18000 Oct-21 cash 18000
CASH
Date RM Date RM
2020 2020
Oct-21 capital 18000 Oct-21 office equipment 120
indirect materials 300
adverstisement
23 expense 100
25 incubator machine 750
27 sealing machine 285
30 purchase 500
balance c/d 15945
18000 18000
Nov- Nov-
01 balance b/d 15945 01 purchase 208
3 sale 300 9 purchase 2500
5 sale 100 15 purchase 68.8
repair and
7 sale 160 27 maintenance 300
10 sale 900 28 rent expense 800
12 sale 3000 salaries expense 4800
20 sale 100 epf expense 528
22 sale 1300 socso expense 144
24 sale 4780 29 utilities expense 800
26 sale 740 30 balance c/d 17176.2
27325 27325
Dec-
01 balance b/d 17176.2 Dec-02 purchase 44
2 sale 280 5 purchase 117.3
4 sale 160 11 purchase 1500
repair and
8 sale 1400 27 maintenance 300
10 sale 60 28 rent expense 800
13 sale 360 salaries expense 4800
15 sale 1000 epf expense 528
18 sale 4220 socso expense 144
25 sale 3600 29 utilities expense 800
31 balance c/d 19222.9
28256.2 28256.2
20 | P a g e
OFFICE EQUIPMENT
Date RM Date RM
2020 2020
Oct-21 cash 120 Oct-31 balance c/d 120
INDIRECT MATERIAL
Date RM Date RM
2020 2020
ADVERTISEMENT
EXPENSES
Date RM Date RM
2020 2020
INCUBATOR MACHINE
Date RM Date RM
2020 2020
SEALING MACHINE
Date RM Date RM
2020 2020
PURCHASE
Date RM Date RM
2020 2020
Oct-30 cash 500 Dec-31 st. profit or loss 4938.1
Nov-
01 cash 208
Nov-
09 cash 2500
Nov-
15 cash 68.8
Dec-
02 cash 44
Dec-
05 cash 117.3
Dec-
11 cash 1500
4938.1 4938.1
21 | P a g e
SALES
Date RM Date RM
2020 2020
Dec- Nov-
31 st. profit or loss 22460 03 cash 300
5 cash 100
7 cash 160
10 cash 900
12 cash 3000
20 cash 100
22 cash 1300
24 cash 4780
26 cash 740
Dec-02 cash 280

4 cash 160
8 cash 1400
10 cash 60
13 cash 360
15 cash 1000
18 cash 4220
25 cash 3600
22460 22460
REPAIR AND MANTENANCE

Date RM Date RM
2020 2020
Nov- Nov-
27 cash 300 30 balance c/d 300
Dec-
01 balance b/d 300 Dec-31 balance c/d 600
27 cash 300
600 600
RENT EXPENSE
Date RM Date RM
2020 2020
Nov- Nov-
Dec-
27 cash 800
1600 1600
22 | P a g e
SALARIES EXPENSE
Date RM Date RM
2020 2020
Nov- Nov-
Dec-
27 cash 4800
9600 9600
EPF EXPENSE
Date RM Date RM
2020 2020
Nov- Nov-
Dec-
27 cash 528
1056 1056
SOCSO EXPENSE
Date RM Date RM
2020 2020
Nov- Nov-
Dec-
27 cash 144
288 288
UTILITIES EXPENSE
Date RM Date RM
2020 2020
Nov- Nov-
Dec-
27 cash 800
1600 1600
23 | P a g e
DEPRECIATION EXPENSE-INCUBATOR MACHINE
Date RM Date RM
2020 2020
Dec- accumulated
23 depreciation 175 Dec-31 st. profit or loss 175
incubator
ACCUMULATED DEPRECIATION-INCUBATOR MACHINE

Date RM Date RM
2020 2020
Dec-
31 balance c/d 175 Dec-23 depreciaiton expense- 175
incubator machine
DEPRECIATION EXPENSE-SEALING MACHINE

Date RM Date RM
2020 2020
Dec- accumulated
23 depreciation 54.99 Dec-31 st. profit or loss 54.99
sealing
ACCUMULATED DEPRECIATION-SEALING MACHINE

Date RM Date RM
2020 2020
Dec-
31 balance c/d 54.99 Dec-23 depreciaiton expense- 54.99
sealing machine
DEPRECIATION EXPENSE-OFFICE EQUIPMENT

Date RM Date RM
2020 2020
Dec- accumulated
23 depreciation 28.25 Dec-31 st. profit or loss 28.25
office equipment
ACCUMULATED DEPRECIATION-OFFICE EQUIPMENT

Date RM Date RM
2020 2020
Dec-
31 balance c/d 28.25 Dec-23 depreciaiton expense- 28.25
office equipment
24 | P a g e
16.0 BALANCE SHEET
Trial Balance as on 31 december 2020

ACCOUNT DEBIT(RM) CREDIT(RM)
cash 19222.9
indirect material 300
advertisement expense 100
incubator machine 750
sealing machine 285
purchase 4938.1
repair and mantenance 600
rent expense 1600
epf expense 1056
socso expense 288
utilities expense 1600
depreciation expense-incubator machine 175
capital 18000
sale 22460
accumulated depreciation-incubator machine 175
40718.24 40718.24
25 | P a g e
17.0PROFIT OR LOSS AND COMPREHENSIVE INCOME
Finass Tempeh
Statement of Profit or Loss and Other Comprehensive Income
For the period ended 31 december 2020
RM RM
sales 22460
Less: Cost Of Goods Sold

purchase 4938.1
less: Closing ending inventory

Cost Of Goods Sold 4938.1
GROSS PROFIT 17521.9
Less: expenses
indirect materials 300
advertisement expense 100
repair and mantenance 600
rent expense 1600
epf expense 1056
socso expense 288
utilities expense 1600
depeciation expense-incubator machine 175
15402.24
Net Profit 2119.66
26 | P a g e
18.0FINANCIAL POSITION
FinassTempeh
Statement of Financial Position as at 31 December 2020
RM RM RM
Non-Crrent Asset
(-)accumulated depreciation office equipment 28.25
91.75
incubator machine 750
(-)accumulated depreciation incubator machine 175
575
sealing machine 285
(-)accumulated depreciation sealing machine 54.99
230.01
Total Non-Current Asset 896.76
Current Asset
cash 19222.9
20119.66
Owner's Equity
capital 18000
Plus: Net Profit 2119.66
20119.66
27 | P a g e
19.0PROCESS COSTING
A process costing system is used where similar products are produced. Products are produced
in the same manner and consume the same amount of direct cost and overheads.
Production scheduling Boiling Incubate labelling
Ingredient such Prepared Prepared Boiling Boiling incubate incubate Cooling

as : ingredients ingredients Mixing Mixing in in labelling
1. Dried Packaging Packaging machine machine
soybeans -soak and
2. Ragi/ Tempeh clean the
Starter / beans
Yeast
3. Vinegar
4. Lentil
5. Brown nuts
6. Sunflower
seeds
7. Pumpkin
seeds
In the process, there is normal loss in process with a scrap value.
PROCESS INPUT OUTPUT NORMAL SCRAP VALUE

LOSESS
Production 100gram 3gram 0.01 0.05
Mixing 5gram 0.5 gram 0.02 0.20
Calculation of scrap value for normal loss
Tempeh(nuts) Tempeh Starter
Cost per gram Cost per gram
= total cost/ number expected of gram =total cost/number expected of gram
= 0.10/ 0.02 =0.10/0.01
= RM5 = RM10
Scrap value Scrap value
= 0.01× RM5 =0.02x RM10
= RM 0.05 =RM 0.20
28 | P a g e
20.0COST ALLOCATION
RM RM
INDIRECT MATERIAL
assembly 0.5
production 1
machine center: incubator
sealing 1.5
storage 2
management 0.8
5.8
utilities 1.5
depreciation of asset 2
salaries 50
The cost allocation for indirect material of production centre and assembly centre is
the disposable tools and tools for production use in that department. The utilities is allocated
for usage of 2 until 3 days od each batch of production. Salary of work is for 1 worker .
DIRECT MATERIAL ISSUE
Details of material issue RM
Production 50
Assembly 30
80
29 | P a g e
Added information
:
Book value of Area Occupied Number of direct machine

machinery (sq.metres) employee labour hour hour
assembly 1 0 0.5
production 4 1 0.9
machine centre:
incubator 4 2 1 1 10
sealing 2 1 0 0.5 4
storage 7 1
management 9 1
6 24 4 2.9 14
30 | P a g e
21.0OVERHEAD ANALYSIS SHEET
Basic of
Item Expenditure Allocation Total Production Centre Service Cetre
production machine centre assembly management storage
Indirect material Direct 5.8 1 1.5 0.5 0.8 2
Utilities Area 1.5 0.24 0.18 0.06 0.6 0.42
Book value
Depreciation of asset machinery 2 2
Salaries No. of employee 50 12.5 12.5 12.5 12.5
Step 1 of Stage 1 59.3 13.74 16.18 0.56 13.9 14.92
Reallocation of service centre:
Management Direct labor hour 4.31 7.19 2.4 13.9
Value of material
Storage issued 9.33 5.59 14.92
Stage 2 of stage 1 59.3 27.38 23.37 8.55
Machine hour and Direct labor

hour 54 840 30
Machine hour overhead rate Step 3 (step 2) RM0.03
Direct Labor hour overhead rate Step 3 (step 2) RM0.51 RM0.27
31 | P a g e
RM
Direct cost (1385 units x RM0.75) 1038.75
Overhead Allocation :
Production ( 1385 units x 0.9 x RM0.51 ) 635.72
Machine centre ( 1385 units x 1.5 x RM0.03 ) 62.33
Assembly (1385 units x 0.5 x RM0.27 ) 186.98
Total Cost 1923.78
Cost per unit ( RM1923.78 / 1385 units ) 1.39
22.0TRADISIONAL COSTING
Production Centre Service Cetre

machine
TOTAL production centre assembly management storage
(RM) (RM) (RM) (RM) (RM) (RM)
Step 1 of Stage 1 59.3 13.74 16.18 0.56 13.9 14.92
Reallocation of
service centre:
Management 4.31 7.19 2.4 13.9
Storage 9.33 5.59 14.92
59.3 27.38 23.37 8.55
Machine hour and

Direct labor hour 54 840 30
Machine hour
overhead rate RM0.03
Direct Labor hour
overhead rate RM0.51 RM0.27
Quantity of DLH for
1385 units of Tempeh 1246.5 19390 692.5
Total Overhead for
1385 units of Tempeh 635.72 62.33 186.98
32 | P a g e
23.0ACTIVITY BASED COSTING SYSTEM
Storing
Machine Purchasing Production Send to of Final
Production centre Assembly Component Scheduling Boiling Heating Labelling storage Product
Stage 1 assingment (RM) 13.74 16.18 0.56 2 3 4.9 4 4.8 5.12 5
No. of
No. of No. of boiler No. of No. of No. of
Direct labor Machine Direct purchase production run purchase incubator product
Activity cost driver hour hour labor hour order runs hours order run hours receive
Quantity of activity cost
driver 54 840 30 4 3 2 2 1 10 10
Activity cost driver rate
(RM) 0.25 0.02 0.02 0.5 1 2.45 2 4.8 0.51 0.5
Quantity of activity cost
driver for 1385 units 0.9 14 0.5 14 18 10 15 5 30 25
Overhead assinged to
product 0.23 0.28 0.01 7 18 24.5 30 24 17.85 15
Product Total Overhead
cost 136.87
Product Total Overhead
cost for 1385 units 0.1
Activity based costing is the overhead cost that allocated to produce 1385 units of poduct in every activity that involve. The total
overhead cost to produce 1385 unit is RM136.87 and for 1 unit is RM0.10. If plus the total overhead cost perunit with direct cost it can be the
cost of product.
33 | P a g e
24.0VARIABLE COSTING
Period 1 Period 2 Period 3 Period 4

Opening inventory
Production cost 2063.65 2063.65 2063.65 2063.65
Closing inventory
Cost of sale 2063.65 2063.65 2063.65 2063.65
Fixed cost 7372 7372 7372 7372
Total cost 9435.65 9435.65 9435.65 9435.65
Sales 11080 11080 11080 11080
Gross profit 1644.35 1644.35 1644.35 1644.35
Less non-manufacturing cost
Net profit 1644.35 1644.35 1644.35 1644.35
25.0COST-VOLUME-PROFIT ANALYSIS
Cost-Volume-Profit (CVP) analysis is a technique that examines change in profit in

response to change in sales volume, costs and price. It used to plan the future levels of
operating activity and it is very useful for planning and monitoring operations and for
motivating employee performance.
To achieve a brea-even-point, I have to do this calculation to determine how many

products we have to sell to get no profit or loss.
Break-even points in units:
= Fixed costs / Contribution per unit (SP-VC)
= 7372 / (2-1.49)
= 7372 / 0.51
= 14454.9
14454 units of Tempeh must be sold to achieve break-even point.
34 | P a g e
26.0BUDGET
SALES BUDGET:
Schedule 1 - Sales budget for the year
Total
revenue
Product Unit sold Selling price (RM)
Tempeh 66480 2 132960
Schedule 2 - Annual production budget

Tempeh
Units to be sold 66480
Planned closing inventory
Total units required for sales and inventories 66480
Less planned opening inventories
Units to be produced 66480
35 | P a g e
Schedule 3 - Annual direct material usage budget
Tempeh
Unit Price/kg(RM) price perunit(RM) Total
Soybeans 332.4kg 5 0.05 1662
Tempeh Starter 180kg 6 0.02 1080
Vinegar 72litre 2 0.10 144
Blackbeans 332.4kg 5 0.17 1662
Lentil 332.4kg 5 0.05 1662
Pumpkin seeds 332.4kg 5 0.05 1662
Sunflower seeds 332.4kg 5 0.05 1662
TOTAL 9534
Schedule 4 - Direct materials purchase budget

Tempeh pumpkin sunflower
soybeans(kg) starter(kg) vinegar(litre) blackbeans(kg) lentil(kg) seeds(kg) seeds(kg)
Quantity necessary to
meet production
requirements as per
material usage budget 332.4 180 72 332.4 332.4 332.4 332.4
Planned closing inventory 0 0 0 0 0 0 0
332.4 180 72 332.4 332.4 332.4 332.4
Less planned opening
inventory 0 0 0 0 0 0 0
Total units to be
purchased 332.4 180 72 332.4 332.4 332.4 332.4
Planned unit purchase
price 0.05 0.02 0.1 0.05 0.05 0.05 0.05
Total purchases 16.62 3.6 7.2 16.62 16.62 16.62 16.62
36 | P a g e
Schedule 5 - Annual direct labor budget
Tempeh
Preparing
material Processing Packaging Total
Budgeted production (units) 66480 66480 66480
Hour per unit 0.05 0.05 0.06
Total budgeted hour 3324 3324 3988.8 10637
Budgeted wage rate per hour 3.00 3.00 3.00
Total wages 9972 9972 11966 31910
Schedule 6 - Annual factory overhead budget

Anticipated activity - 102000 direct labor hour
Tempeh
Variable overhead rate per direct labor HOUR Overhead
Preparing
Controllable overheads: material Processing Packaging Total
Indirect material 0.9 2991.6 2991.6 3590
Indirect labor 0.50 1662 1662 1994
4653.6 4653.6 5584 14892
Non-controllable overheads:
Power 0.03 99.72 99.72 119.7
Salaries of management 0.05 166.2 166.2 199.4
265.92 265.92 319.1
Total overhead 4919.52 4919.5 5903 14892
Budgeted departmental overhead rate 1.48 1.48 1.48
37 | P a g e
Schedule 7 - Annual selling and administration budget
RM RM
Selling:
Salaries 14400
14400
Administration:
Salaries 1000
advertising 600
1600
TOTAL 1600
DEPARTMENTAL BUDGET
Annual departmental operating budget
(RM) Budget (RM) Actual (RM)
Direct labour
13296 minutes at RM 3 39888
Direct materials:
332.4kg of soybeans at RM0.05 1662
180kg of Tempeh Starter at RM0.02 1080
72litre of vinegar at RM0.10 144
332.4kg of blackbeans at RM0.05 1662
332.4kg of lentil at RM0.05 1662
332.4kg of pumpkin seeds at RM0.05 1662
332.4kg of sunflower seeds at RM0.05 1662
Controllable overheads:
Indirect materials 2991.6
Indirect labour 1662 4653.6
Uncontrollable overheads:
Power 99.72
Salaries of management 166.2 265.92
44807.52
38 | P a g e
MASTER BUDGET
FinassTempeh
Budgeted profit and loss account for the year
RM RM
Sales 132960
Less: Cost of Sale
Purchase 93.9
Cost of raw materials 93.9
Direct Labor 31910.4
Factory Overhead 14891.52
Total Manufacturing Cost 46895.82
Cost of Sales 46895.82
GROSS PROFIT 86064.18
Less: Expense
Selling and administration 1600
Budgeted operating profit of the year 84464.18
39 | P a g e
FinassTempeh
Budgeted balance sheet as at 31 December
RM RM
Non-Current Asset
Office Equipment 120
(-)accumulated depreciation 28.25
91.75
Incubator Machine 750
(-)accumulated depresiation 175
575
Sealing Machine 285
(-)accumulated depreciation 54.99
230.01
Total Non-Current Asset 896.76
Current Asset
Cash 101567.4
102464.2
Owner's Equity
Capital 18000
Plus: Net Profit 84464.18
102464.2
The yearly budget should be set for future activities, normally drawn up for a period.
When the entire budget has been prepared, such as sales budget, production budget direct
mayerials usage budget, direct materials purchase budget, direct labor budget, factory
overhead budget , selling and administrative budget, and departmental budget, there
summarize into a master budget consisting in a budgeted profit and loss account and a
balance sheet.
40 | P a g e
27.0 RISKS
There have also some risks that I faced throught this business.
For example:
 Due to my product is made from natural ingredients, so the shelf life or my product
will be lower compared to other products.
To solve this problem : I can directly send to my customer. Therefore, I need keep my
product in storage room.
 There also has customer’s that think my variety of Tempeh is not good as original
Tempeh.
I have to conviced the customer and show the review from other customer to this
customer. Besides that, I also tell the customer that actually I had tried this product before
I sell itwhether it can cause desease or not. Finally, these customer tried and bought many
of it from me and give me review after eat it.
28.0 OPPORTUBITY OF MY PRODUCT
For the opportunities, I think that I cam try out different packaging for my variety
product such as use paper bag, container, banana leaf and so on. Therefore, customer can buy
the different packaging of the product other that use common plastic packaging. Besides that,
I also think I can promote my product to other people who need or want to try or mybe
craving Tempeh such as create my business page att Instagram so that people can reach it by
direct message in Instagram.
41 | P a g e

PPT3402-1, Indivual Assingment Product, NUR AFINA DAUD

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PPT3402-1, Indivual Assingment Product, NUR AFINA DAUD

Uploaded by

Copyright:

Available Formats

FACULTY OF AGRICULTURE

UNIVERSITI PUTRA MALAYSIA

CAMPUS SERDANG, SELANGOR

BACELOR SCIENCE OF AGRIBUSINESS

COST AND MANAGEMENT ACCOUNTING (DRURY)

INDIVIDUAL ASSIGNMENT: MY AGRO BILLIONAIRE DREAM

NUR AFINA DAUD BINTI ABDULLAH

DR. FAZLIN BINTI ALI

17TH JANUARY 2021

NO. CONTENT PAGE

FinassTempeh is a sole propriertor company. This company is focusing on

Business Name: FinassTempeh

Telephone No: 03-3133055

Website: http //: www.Finass_Tempeh.com

Type of Business: Private Limited

Main Activity: Produced Tempeh

Date of business conducted: 1 November 2020

Date of business registered: 31 October 2018

No. Bank Account: 121309872678

Total business start-up capital: RM 400

Types of Product Food Product

1. Soak the soybeans for overnight

(Tempeh can be eaten raw or cooked )

Method of using Tempeh

(To freeze the Tempeh, steam it for 20

a) The price cheap and everyone could afford it

b) Unite the culture of the community

c) Healthy food for adult as well as children

6.0 MISSION AND VISION

FinassTempeh company is to be a company that provides nutritious, high quality and

8.0 SIZE MARKET

Share Final User

Share Industrial Users

To achieve my sales target, which is 5000 pack Tempeh in a month, I had

➢ FinassTempeh business card contains name, phone number, premise

❖ Printed Banner / Canvas

➢ These banners are installed in strategic areas to introduce FinassTempeh to

➢ This blog provides information on FinassTempeh products, such as price

→ Facebook and Instagram

➢ This social media is a growing social space, FinassTempeh takes this

13/12/2020 10/12/2020 05/12/2020 02/12/2020

In my manufacturing process, there have types of costs involves such as direct

DIRECT MATERIAL COSTS

Direct Material Cost

Item Quantity Price/kg (RM) Price/Unit Total Price (RM)

Dried soybeans 138.5 kg 5 0.05 692.5

Tempeh Starter 15kg 6 0.02 90

Vinegar 6litre 2 0.1 12

TOTAL 0.17 794.5

Dec-02 cash 280

REPAIR AND MANTENANCE

ACCUMULATED DEPRECIATION-INCUBATOR MACHINE

DEPRECIATION EXPENSE-SEALING MACHINE

ACCUMULATED DEPRECIATION-SEALING MACHINE

DEPRECIATION EXPENSE-OFFICE EQUIPMENT

ACCUMULATED DEPRECIATION-OFFICE EQUIPMENT

Trial Balance as on 31 december 2020

Less: Cost Of Goods Sold

less: Closing ending inventory

Statement of Financial Position as at 31 December 2020

office equipment 120

(-)accumulated depreciation office equipment 28.25

incubator machine 750