AUG 2016

Question 1 c

i. Finance
ii. Rnd
iii. Finance
iv. Marketing
v. Production cost
vi. Production cost
vii. Administrative
viii. Administrative
ix. Rnd / administrative
x. Rnd

HaniSweet Confectionary

cost statement for the month of July 2016.

RM RM
Direct material ( 5,200 + 2,300 ) 7500
Direct labor 3250
Prime cost 10750

Add : production overhead

Salary of production supervisor 1800
Indirect labor 1350
Depreciation of oven 420
Utilities expense ( 80% x 2450 ) 1960
Rent expense ( 60% x 1800 ) 1080 6610
Production cost 17360

Non-production overhead
Administrative costs
Utilities expense ( 20% x 2450 ) 490
Rent expense ( 40% x 1800 ) 720
Depreciation of showroom shelfs 350
Selling costs
Salary of promoter 1000
Advertising expense 500
3060
TOTAL COST 20420
Aug 2016

QUESTION 2

A. Perniagaan Emanis is a well-known business making and selling bahulu to customers

around Alor Setar, Kedah. The demand for bahulu is expected to increase from year

to year. Thus, the business has to revise their ordering quantity of main ingredient.

Based on year 2015, the business used the following quantity of main ingredient:

Month Quantity (annual demand)

January to March 2,000 kg

April to June 3,000 kg

July to September 5,150 kg

October to December 5,150 kg

The ordering cost of the main ingredient is RM3.00 per order. For each holding, the

business incurred storage cost and security cost of RM3.00 and RM1.50 respectively.

Required:

By using tabulation method, identify the Economic Order Quantity with the number of

order given are 340 times, 255 times, 150 times and 75 times.

O : RM3

C : RM4.5

Demand per annum : 2000 + 3000 + 5150 + 5150 = 15300kg

Demand (d) 2 15300 15300 15300 15300

Order size (q) 3 45 60 102 204
No. of orders (d/q) 1 340 255 150 75
Average sock (q/2) 4 22.5 30 51 102
Total carrying cost ( q/2 x 5 101.25 135 229.5 459
RM4.5)
 Total ordering cost (d/q x 6 1020 765 450 225
RM3)
Total cost ( total holding + 7 1121.25 900 679.5 684
ordering cost )
From the table, EOQ is 102 kg at a cost of RM679.5

b.

a.

Date receipts Issues Balance

June units CPU Total units CPU Total units CPU Total
1 Bal b/d 3,000 10 30,000
2 2,500 10 25,000 500 10 5,000
7 4000 15 60,000 500 10 5,000
4000 15 60,000
15 500 10 5,000
1,500 15 22,500 2,500 15 37,500
20 1,750 18 31,500 2,500 15 37,500
1,750 18 31,500
22 150 18 2,700 2,500 15 37,500
1,600 18 28,800
25 2,500 15 37,500
1,100 18 19,800 500 18 9000
28 2,600 20 52,000 500 18 9000
2,600 20 52,000
30 Stock 300 18 5,400 200 18 3,600
loss
2,600 20 52,000
30 Closing 2,800 55,600
inventory