QUESTION 1
Multi Cakes SdnBhd is involved in selling cakes. You are required to classify the following costs according to their behavior.
| No. | Cost items | Fixed cost | Variable costs | Semi-variable costs | |
|
|
Flour | ||||
|
|
Electricity expenses | ||||
|
|
Sugar | ||||
|
|
Salary of baker | ||||
|
|
Salary of cashier | ||||
|
|
Depreciation of machine | ||||
|
|
Insurance | ||||
|
|
Telephone expenses | ||||
|
|
Directors’ salary | ||||
|
|
Baking powder |
(Total: 5 Marks)
Question 2
- Fill the missing amount in each of the following accounting equations.
| Assets
RM |
Liabilities
RM |
Expenses
RM |
Capital
RM |
Revenue
RM |
| 550,000 | 150,000 | (i) | 250,000 | 575,000 |
| 650,000 | 115,000 | 255,000 | (ii) | 600,000 |
| 855,000 | (iii) | 345,000 | 200,000 | 685,000 |
| (iv) | 220,000 | 365,500 | 280,000 | 750,000 |
| 750,000 | 120,000 | 540,000 | 500,000 | (v) |
| 230,750 | (vi) | 175,000 | 50,000 | 250,000 |
| (vii) | 90,000 | 275,000 | 200,000 | 319,500 |
| 88,000 | 25,000 | 92,000 | 50,000 | (viii) |
(8 marks)
- Below is the transaction in relation to Cempaka Rias Enterprise (CRE) for January 2021
| Transactions | Effects | Double entry | |
| Eg: | Paid stationeries by cheque | Increase expenses
Decrease asset |
Dr Stationery
Cr Bank |
| 1. | Owner brought in cash into the business | ||
| 2. | Owner brought in furniture into the business | ||
| 3. | Purchased goods on credit from Sweety Enterprise | ||
| 4. | Received a loan from ABC Bank | ||
| 5. | Paid employees’ wages by cheque |
Required:
- Identify the effects (increase/decrease) of the above transactions on assets, liabilities, owner’s equity, revenues and expenses. (5 marks)
- Identify the double entry for the above transactions (5 marks)
(Total: 18 marks)
Question 3
Walla manufactured SdnBhd is a car manufacturer that produce side mirror with a sales price of RM350 and a variable cost of RM150. Fixed costs are RM250,000 per annum with total unit sold was 1,400 units. You are required to calculate the following:
- Contribution / Sales ratio.
(2 marks)
- Number of units to break-even.
(2 marks)
- Sales (RM) at break-even point.
(2 marks)
- Number of units to be sold to achieve a profit of RM150,000 per annum
(4 marks)
- Based on B above, find the margin of safety in units.
(2 marks)
(Total: 12 marks)
Question 4
Rahul Sign, the owner of Wood Factory Expert (WFE) has the following accounts balance on 31 December 2021.
| RM | |
| Capital | 600,000 |
| Drawings | 22,500 |
| Sales | 2,000,000 |
| Purchases | 1,040,000 |
| Return inwards | 20,000 |
| Return outwards | 10,000 |
| Inventory, as at 1 January 2021 | 300,000 |
| Delivery van | 60,000 |
| Office equipment | 120,000 |
| Accounts receivable | 376,500 |
| Accounts payable | 80,000 |
| General expenses | 3,000 |
| Insurance | 10,000 |
| Cash in hand | 15,000 |
| Cash in bank | 40,000 |
| Commission received | 5,000 |
| Wages and salaries | 100,000 |
| Long term investments | 600,000 |
| Rent received | 12,000 |
Additional information:
- The closing inventory was valued at RM240,000
Required:
- Prepare a Statement of Profit and Loss for the year ended 31 December 2021
(10 marks)
- Prepare a Statement of Financial Position as at 31 December 2021
(5 marks)
(Total: 15 marks)
Answers to Above Questions on Multi Cakes SdnBhd
Answer 1: The classification of different types of cost as fixed, variable and semi-variable is performed as follows:
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