KOLEJ PROFESIONAL MARA BANDAR PENAWAR

FINANCIAL ACCOUNTING 3 (ACC2043)

SESSION 3 2021/2022
ASSIGNMENT: MANUFACTURING ACCOUNT

NAME & ID OF STUDENT MUHAMMAD RAFIQ BIN MOHD RAMDZI (PDA 2011004)

MUHAMMAD SYAKIR SANIM BIN YUSRIZAL (PDA 2011015)

AZRIN ZAINI ‘IFAF BINTI MOHD ZAINUDIN (PDA 2011013)

PROGRAMME / CLASS DIA 4A

CURRENT SESSION 3 2021/2022

NAME OF LECTURER MADAM SURAYA BINTI BAHAR

DUE DATE WEEK 7 (6/1/2022)

SUBMISSION DATE 6/1/2022

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 KOLEJ PROFESIONAL MARA BANDAR PENAWAR
SESSION: 3/2021
ASSESSMENT COVER SHEET
Name: Course: FINANCIAL ACCOUNTING 3
1. MUHAMMAD RAFIQ BIN MOHD
RAMDZI (PDA 2011004)
2. MUHAMMAD SYAKIR SANIM BIN
YUSRIZAL (PDA2011015)
3. AZRIN ZAINI ‘IFAF BINTI MOHD
ZAINUDIN (PDA 2011013)
Class: DIA 4A Code: ACC 2043
Assessment Type: ASSIGNMENT Lecturer: MADAM SURAYA BINTI BAHAR
Overall marks : 100 Weightage : 20%

LEARNING OUTCOMES & ITEM SPECIFICATION (TBP)

CLO CLO PLO Assessment criteria C1 C2 C3 C4

Domain Domain (C/A/P)

Prepare the 2.1 Definition /

financial 2.2 Manufacturing Accounts. /
statements for CLO2 PLO4 2.3 Statement of Profit or Loss. /
manufacturer. 2.4 Statement of Financial Position. /
(A4, PLO4)
VERIFICATION

Prepared by: Course Coordinator (CC) Verified by: Subject Matter Expert (SME)

PN MAZAFATON MOHMAD PN NORHIDAYAH ABD KHALID

KPM BERANANG KPM BERANANG
Date : 13.12.2021 Date :

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ACKNOWLEDGEMENT

First and foremost, we praises and thanks to Allah, the almighty for his showers and
blessings throughout our research work to complete the assignment successfully. This task
had be done due to the attitude of group members that giving cooperation and showing good
effort. We went through the problems encountered while wanting to complete this task
together.

Besides that, we heartly thankful to our Financial Accounting 3 lecturer, Madam Suraya
Binti Bahar for giving the guidance throughout the assignment. She provided sufficient advice
that helped us to completing this assignment. Her encouragement, guidance and support from
the initial to the final level gave us to develop an understanding of this subject and finished
the assignment.

Last but not least, we would like to thank to our parents and friends who helped we a
lot in finishing this assignment within the time limit. We would also offer our regards and
blessings to all of those who supported our groups in any respect during the completing of the
assignment.

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TABLE OF CONTENTS

1.0) INTRODUCTION ................................................................................... 4

1.1) General Information of Manufacturing Account .......................................... 4
1.2) Purpose of Manufacturing Account ............................................................ 4
2.0) SOLUTIONS ........................................................................................... 5
2.1) Background of The Company .................................................................... 5
2.2) Information About the Product Manufactured ............................................ 6
2.3) Manufacturing Account ............................................................................. 8
2.4) Statement of Profit & Loss ........................................................................ 9
2.5) Statement of Financial Position ............................................................... 10
3.0) CONCLUSION ...................................................................................... 11
4.0) REFERENCES ....................................................................................... 12
5.0) APPENDICES ....................................................................................... 13

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1.0) INTRODUCTION

1.1) General Information of Manufacturing Account

Manufacturing accounts are created to determine the cost of goods sold, which
includes direct expenses and it deals with raw materials and work in progress and
not the finished goods.

1.2) Purpose of Manufacturing Account

The purpose of manufacturing account is to calculate Production Cost.

Sometimes it is provided to indicate whether the factory has made a profit or a
manufacturing loss. Determining manufacturing profits or losses will help
manufacturers decide whether to produce their own goods or not.

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2.0) SOLUTIONS

2.1) Background of The Company

Our company named Razis Manufacturer is a company that run a small-scale

manufacturing business in Malaysia that produces chili sauce. The company has
started their operation on 1st December 2021 and located at Ayer Molek, Melaka.

Vision : To be the largest sauce producer company in Malaysia.

Mission : To improve continuously the quality of the chili sauce.

Organizational Chart

AZRIN ZAINI ‘IFAF BINTI MOHD

ZAINUDIN
CHIEF EXECUTIVE OFFICER

MUHAMMAD RAFIQ BIN MOHD MUHAMMAD SYAKIR SANIM BIN

RAMDZI YUSRIZAL
CHIEF FINANCING OFFICER CHIEF OPERATING OFFICER
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2.2) Information About the Product Manufactured

The product produced by our firm is chili sauce called RAZIS sauce. A sauce is
a type of liquid, cream, or semi-solid food that is served or used in preparing other
foods. Most sauces are usually not eaten on their own but they are made to add
flavor, moisture and visual appeal to a dish.

The main sauce is basically made of three components. The first is the liquid
as the body of the sauce, the second is a thickening agent and lastly the flavoring
and seasoning.

For the first component which is the liquid as the body of the sauce, the
ingredients used are stock, milk and fat. Next, the second component is the sauce
thickening agent. Among the ingredients used are starch, cream, egg yolk and
vegetable puree. The last component is flavoring and seasoning. These flavoring
and seasoning according to the flavor of the sauce made like chili sauce, it uses
chili to make the sauce taste spicy.

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Razis Manufacturer has provided the following balances as at 31 December 2021:

RM
Capital as at 1 December 2021 20000
Inventory as at 1 December 2021:
Raw materials 4500
Work in progress 10000
Finished goods 18000
Provision of unrealized profit 1 December 2021 2500
Return outwards on raw material 900
Rent 5500
Salaries to Machine Operators 8400
Bank charges 500
Direct wages 3000
Sales 110000
Account payable 4800
Account receivable 7460
Cash 8000
Plant and machinery at cost 15000
Delivery van at cost 11000
Electricity 2080
Insurance on factory building 1500
Loan 12000
Direct factory expenses 4550
Purchase of raw material 45000
Royalty 1500
Discount allowed 500
Indirect wages 3500
Discount received 1200

Additional Information :

1. Inventories at 31 December 2021 were value as follows:

Raw materials 3000
Work in progress 7500
Finished goods 21500

2. Depreciation plant & machinery and delivery van at the rate of 20% per annum on cost.

3. Finished goods are to be transferred at cost plus 10%.

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 4. Accruals and prepayments are follows:
Accrual: Rent 300
Prepayment: Insurance on factory building 200

5. Allocation of expenses is as follows:

Factory Office
Rent 3/4 1/4
Electricity 3/4 1/4

2.3) Manufacturing Account

Razis Manufacturer
Manufacturing Account for the year ended 31 December 2021
RM RM
Opening Inventories of Raw Material 4500
(+) Purchase Raw Material 45000
(-) Return Outward on Raw Material (900)
(-) Closing Inventories on Raw Material (3000)
Cost of Raw Material Consumed 45600

(+) Salaries to machine operators 8400

(+) Direct Wages 3000
(+)Direct factory expenses 4550
(+) Royalty 1500
PRIME COST 63050
Factory Overhead Expenses:
Indirect wages 3500
Depreciation on plant & machinery (20% x 15000) 3000
Insurance on factory building (1500 - 200) 1300
Electricity (3/4 x 2080) 1560
Rent (5500 + 300) x 3/4 4350 13710

Total Production Cost 76760

(+) Opening Work in Progress 10000
86760
(-) Closing Work in Progress (7500)
PRODUCTION COST OF COMPLETED GOODS 79260

(+) Manufacturing Profit (10% x 79260) 7926

Cost of Good Transferred 87186

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 Razis Manufacturer produced 10500 unit bottles of chilli sauce in a month. The total
production cost of completed goods is RM 79260. The percentage of mark up for determining
the selling price is 10%. So, the cost per unit and selling price are as follows:
79260
Cost per unit =
10500

= RM7.55/unit

Selling price = (10% x 7.55) + 7.55

= RM8.31

2.4) Statement of Profit & Loss

Razis Manufacturer
Statement of Profit or Loss for The Year Ended 31 December 2021
RM RM
Sales 110000
(-) Cost of goods sold
Opening inventories of Finished Goods 18000
(+) Cost of Goods Transferred 87186
(-) Closing inventories of Finished Goods (21500) (83686)
GROSS PROFIT 26314
(+) Manufacturing Profit 7926
34240
(+) Revenues
Discount Received 1200
Decrease in AFUP (2500 - 1955) 545 1745

(-) Expenses
Administrative Expenses
Electricity (1/4 x 2080) 520
Rent (1/4 x 5500+300) 1450

Selling and Distribution Expenses

Discount allowed 500
Depreciation on delivery van (20% x 11000) 2200

Financial Charges
Bank Charges 500 (5170)

NET PROFIT 30815

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 2.5) Statement of Financial Position

Razis Manufacturer
Statement of Financial Position as at 31 December 2021
RM RM
Non-Current Assets
Plant and machinery 15000
(-) Accumulated depreciation (3000) 12000
Delivery van 11000
(-) Accumulated depreciation (2200) 8800
20800

Current Assets
Inventory:
Finished Goods 21500
(-) Allowance for unrealized profit (545)
Work In Progress 7500
Raw materials 3000
Cash 8000
Account receivables 7460
Prepaid insurance on factory building 200 47115
67915

Financed by
Capital 20000
(+) Net profit 30815 50815

Non-Current Liabilities
Loan 12000

Current Liabilities
Account payables 4800
Accrued rent 300 5100
67915

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3.0) CONCLUSION

To summarize the manufacturing flow, we decide to run a company that manufacture

chilli sauce on 1 December 2021 with an issued capital of RM 20000. The name of our company
is Razis Manufacturer and it is located in Ayer Molek, Melaka.

In addition, the company has produced 10500 units of chilli sauce bottles in December.
The monthly financial report that we have done shows the production cost of finished goods
is RM 79260. Through the cost of production of finished goods, we find the cost per unit for
the chilli sauce is RM 7.55, and we sell the chilli sauce for RM 8.31 per bottle including the
mark-up 10%. The net profit that our company gained for December is RM30815.

So, through this assignment, we found that to produce a truly successful product
requires techniques, steps and methods that follow the correct procedures. It starts with the
type of product, the raw materials, and the result becomes a quality that will be seen and
evaluated by the customer.

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4.0) REFERENCES

Kenton, W. (2021, December 1). Manufacturing. Retrieved from Investopedia Web site:
https://www.investopedia.com/terms/m/manufacturing.asp

Matijevich, S. (n.d.). Chaparral high school culinary arts. Retrieved from Sauces
“Refinement”: https://chaparralculinary.wordpress.com/about-the-course/week-5-
sauces-refinement/

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5.0) APPENDICES

RUBRIC: PART A – Submission Report (20 Marks)

Details Marks Marks Rewarded

Provided
1. Introduction
 General Information about Manufacturing 2
Account
 Purpose of Manufacturing Account
2. Background of the company
 Business Activities 3
 Vision and Mission
 Organizational Chart
3. Information about the product manufactured
 Name of the product 2
 Components of the product
4. Identification all the costs involved in
manufacturing the product.
 Cost of raw material (using correct formula) 3
 Direct Labour (2 examples of direct labour) 2
 Direct Expenses (2 examples of direct
expenses) 2
 Prime cost 1
 Indirect Cost (5 examples of indirect cost) 5
 Production cost 1
 Work in Progress 1
 Cost of Completed Goods 1
 Manufacturing profit 1
 Cost per unit 1
 Selling Price 1

5. Financial Accounts:

a) Statement of Profit and Loss 1

 Sales 2
 COGS 2
 Other Revenues (2 examples) 5
 Expenses (5 examples) 1
 Net Profit/Net Loss

b) Statement of Financial Position

 Non-Current Assets (including 2
depreciation) (2 examples) 3
 Current Assets (3 examples) 1
 Capital (RM20.000) 1
 Long Term Liabilities (1 example) 2
 Current Liabilities (2 examples)
6. Conclusion 1
7. References 1
8. Appendices – Document A 2
TOTAL: A 50 50/50 x 15= 15 marks

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 PART B – Group Presentation (10 Marks)
VIDEO RUBRIC

Group Members: 1. MUHAMMAD RAFIQ BIN MOHD RAMDZI (PDA 2011004)

2. MUHAMMAD SYAKIR SANIM BIN YUSRIZAL (PDA 2011015)
3. AZRIN ZAINI ‘IFAF BINTI MOHD ZAINUDIN (PDA 2011013)

Possible
Poor Satisfactory Good Very good Excellent Lecturer
Points
1-2 3-4 5-6 7-8 9=10 Assessment
Audience Very interesting
Audience has Student Student
cannot where
difficulty presents presents
understand information is
following the information in information in
the organized
presentation logical logical,
Organization presentation systematically, 10
because sequence interesting
because accurately,
student jumps which sequence which
there is no relevantly and
around. audience can audience can
sequence of audience are
follow. follow
information. well addressed.
Student
Student
Student does demonstrates
Student is Student is at demonstrates
not have full knowledge
uncomfortable ease with the full knowledge
Content grasp of (more than
with the content but with 10
Knowledge information required) with
information fails to explanations
about explanations
presented elaborate. and
subject. and
elaborations
elaborations
The quality The materials Visual aids are
The materials The materials in
and materials in the video well used and
in the video the video are
in the video are make the
are not very well
Visuals lacked some adequately presentation 10
organized organized and
organization organized and more
and lack understandable
and somewhat somewhat interesting and
clarity.
clear. clear. meaningful
All members
Only one The majority All members
demonstrate an
person Half of the of the demonstrate an
active role in
Participation demonstrate group did most members active role in 10
the process and
d an active of the work demonstrate the process.
motivate each
role. an active role.
other’s

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 Few of the All group
Only one or Most of the
group members are
None of the two of the group
members are very fluent
group group members are
slightly and voices are
members are members fluent and
Delivery fluent and easy to 10
fluent and is/are fluent voices are
voices are be heard clearly
voice is not and voice is slightly easy
quite difficult
clear slightly to be heard
to be heard
clear clearly
clearly
50m
Total = 50/10 =5
marks

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NAME: MUHAMMAD RAFIQ BIN MOHD RAMDZI CLASS: DIA 4A

ID NO: PDA 2011004 GROUP NAME: RAZIS MANUFACTURER

INDIVIDUAL REFLECTION

The problem that I faced during the completion of this assignment is we got about 4
type of assignments from different course at the same time. So, I have to manage my
time with all the assignments.

My comment for this assignment is it is very useful to me because it makes me become

clearer about manufacturing account. We have to create all the information by ourselves,
so it gives us sight about how a company run a manufacturing business.

I suggest to add more questions since this assignment is not too difficult as our group
consist of 3 members.

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NAME: MUHAMMAD SYAKIR SANIM BIN YUSRIZAL CLASS: DIA 4A

ID NO: PDA2011015 GROUP NAME: RAZIS MANUFACTURER

INDIVIDUAL REFLECTION

The problem that I faced when doing this assigment is when to determine the value for
the informations before doing the manufacturer account.

After that, comment that I can give for this assignment is this assignment is not too
difficult but I need to check every part of works that I did properly because one mistake will
cause many mistakes.

Last but not least, one suggestion from me for this assignment is add more questions to
match it with the members that have in one group.

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NAME: AZRIN ZAINI ‘IFAF BINTI MOHD ZAINUDIN CLASS: DIA 4A

ID NO: PDA2011013 GROUP NAME: RAZIS MANUFACTURER

INDIVIDUAL REFLECTION

The problem that I faced while completing this assignment is when wanting to find the
right answer for a complex concept. It gets harder when it starts to underestimate than too
many books and resources from google.

Next, the comment I can give for this assignment is that for me this assignment is very
easy to do, but if you do not understand correctly what is asked, it may make this assignment
difficult and can confuse students.

Lastly, my suggestion for this assignment is that it is possible that this assignment can
be made by a group of 4 people per group to further facilitate the transaction.

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