Question

B. Acik Bawang Nasi Lemak Enterprise (ABNLE) manufactures and sell a well-known “spicy rendang nasi lemak”. Each set of nasi lemak is wrapped in an “exclusive bag” which is also includes a serving of black coffee and a piece of curry puff. ABNLE incurred the following cost last year:

Cost RM Cost RM
Materials for nasi lemak 205,000 Salaries for sales staff 75,000
Materials for curry puff 102,000 Advertising 35,000
Materials for black coffee 80,000 Depreciation on the headquarters building 15,000
Wrapper and bag 75,000 Salary of the corporate receiptionist 30,000
Factory rent 20,000 Other administrative costs 120,000
Direct labour 89,000 Salary of the factory receiptionist 20,000
Factory utilities 6,800 Indirect labour in the factory 30,000
Supervisor in the factory 50,000 Depreciation on factory equipment 12,000
Sales commission 37,000

Required:

a) Classify each of the above costs using the following table format. Please include total cost in each of the column.                            

Product costs Period costs
Costs
Direct material
RM Direct labour
RM Manufacturing overhead
RM Selling expenses
RM Administrative expenses
RM
Materials for nasi lemak
205,000
Materials for curry puff
Materials for black coffee
Wrapper and bag
Factory rent
Direct labour
Factory utilities
Supervisor in the factory
Salaries for sales staff
Advertising
Depreciation on the headquarters building
Salary of the corporate receiptionist
Other administrative costs
Salary of the factory receiptionist
Indirect labour in the factory
Depreciation on factory equipment
Sales commission

TOTAL

b) What was the total product costs for last year?                                                      (1 mark)


c) What was the total period costs for last year?                                                        (1 mark)


d) If 30,000 units were produced last year, what is the unit product cost?              
(Total: 20 Marks)

Answer 1

Product costs		Period costs
Materials for nasi Lemak	205,000	Salaries for sales staff	75,000
Materials for curry puff	102,000	Advertising	35,000
Materials for black coffee	80,000	Depreciation on headquarter building	15,000
Wrapper and bag	75,000	Salary of corporate receptionist	30,000
Factory rent	20,000	Other administrative cost	120,000
Direct Labour	89,000	Sales Commission	37,000
Factory utilities	6,800
Indirect labour in the factory	30,000
Salary of factory receptionist	20,000
Supervisor in the factory	50,000
Depreciation of factory equipment	12,000
Total	689,800	Total	312,000

b) Total Product cost = $689,800

c) Total Period cost = $312,000

d) if 30,000 units were produced, unit product cost = 689,800/ 30,000

= $23