GROUP ASSIGNMENT 1
ACC416
SEMESTER 2
LECTURER NAME: KHAIRIAH BINTI AHMAD
BIL. NAME MATRIC NUMBER
1 EVA JACQUELINE STEVEN 2021843828
2 JOEL JAU ULOI 2021855866
3 MUHAMMAD DANISH FARHAN BIM ZUHAMIZI 2021495018
4 SUHAIMI BIN SUFFIAN 2021470974
TABLE OF CONTENT
CONTENT PAGE
ACKNOWLEDGEMENT 1
QUESTION 1 2-3
QUESTION 2 4-6
QUESTION 3 7
ACKNOWLEDGEMENT
We would like to express our special thanks to our lecturer Madam Khairiah Binti
Ahmad for giving the opportunities to complete this Group Assignment. Madam Khairiah has
been teaching and guiding on our assignment for account subject, ACC406 for semester one
and ACC416 for semester two. Without the knowledge that has been passed down to us, we
would not have complete this group assignment in time.
Thanks also to UiTM that have provided us the subject that related to our Bachelor Of
Science (Hons) (Plantation Technology And Management) which is accounting as one part of
the subject that student need to learn.
Special thanks to all our group member, the completion of this assignment could not
been possible without the cooperation of all group member. Everyone has giving their best
effort on completing this group assignment.
Thanks also to our parents and friend that has giving full moral support for us to able
to complete this assignment.
Finally, we would like to Thank God, for letting us go through all difficulties from the
first until we able to complete this assignment. We feel grateful for He has guiding us day by
day through this semester and upcoming semester.
1
Question 1
(A)(i)
(a) EOQ of egg
Annual demand – 3000kg ÷ 2 = 1500 dozen egg
Ordering cost – RM180 + RM45 = RM225
Holding cost – RM 4 x 20% + RM4 x 5% = RM 1
Max order – 5000kg ÷ 2 = 2500 dozen
Min order – 1000kg ÷ 2 = 500 dozen
Max delivery time – 1 month
Min delivery time – 0.5 month
2×1500×225
EOQ = √
1
= √675000
= 822 dozen
(b) Reorder stock level
= 2500 dozen x 1 month
= 2500 dozen
(c) Maximum Stock Level
= 2500 – (500 x 0.5) + 822
= 3072 dozen
(d) Minimum Stock Level
2500+500 0.5+ 1
= 2500−( × 2 )
2
= 2500 – 1125
= 1375 dozen
(A)(ii)
Not enough stock for production due to improper stock level inspection and storage
management. This can cause to shortage of material and low production. A stock should be
calculated and inspected as daily basis.
Material received are in poor quality and not receiving material in time if not making
material order through an authorized dealer or supplier. Material or stock should be
inspected by the authorized person for a quality check and on time delivery schedule.
2
b) (I)
Warisan Food Melaka Sdn. Bhd.
Store Ledger Card for the month of April 2022
Date Receipt Issue Balance
Nov Details Qty CPU Total Qty CPU Total Qty CPU Total
(RM) (RM) (RM) (RM) (RM) (RM)
1 Opening 100 3.50 350
balance
5 Purchase 150 3.80 570 100 3.50 350
150 3.80 570
9 Issue 100 3.50 350
25 3.80 95 125 3.80 475
12 Purchase 120 3.90 468 125 3.80 475
120 3.90 468
15 Return to 20 3.90 78 125 3.80 475
supplier 100 3.90 390
20 Issue 125 3.80 475
5 3.90 19.5 95 3.90 370.5
22 Purchase 100 4.10 410 95 3.90 370.5
100 4.10 410
28 Issue 95 3.9 370.5
55 4.10 225.5 45 4.10 184.5
0
30 Stock loss 15 4.10 61.50 30 4.10 123
30 Closing 30 4.10 123
inventory
II) The cost of material issued to production department and value of closing stock as at 30
April 2022.
= (RM 350 +RM 95 + RM 475 + RM 19.50 + RM 370.50 + RM 225.50) - RM61.5
= RM 1474
III) -Easy to understand and use, because it used logical and systematic storekeeping practice.
-The closing stock value is based on recent price/ market price.
-Able to prevent stock deterioration & obsolescence because oldest stock needs to be
issued first.
3
Question 2
(A)
(i) Service cost centre does not produce any product but it provide services for production
cost centre. Any cost that come from service cost centre are from production cost centre.
Reapportion is need to be done to transfer all service cost to production department.
Reapportionment can be made through repeated basis method.
(ii)
a. Selling overhead
b. Administration overhead
c. Finance overhead
d. Distribution overhead
4
(B)(i)
FIT & WELL
Overhead Analysis Sheet for the month April 2022
Overhead Basis Total Mixing Packaging Store Quality
Cost (RM) (RM) (RM) Control
(RM) (RM)
Indirect Direct 74,400 32,000 21,000 12,600 8,800
Material allocation
Insurance Cost of 2,800 (90,000/12 (10,000/120 - (20,000/120,
on machine 0,000 X ,000 X 000 X 2,800)
machinery 2,800) 2,800) 467
2,100 233
Insurance Floor area 1,200 (7,000/15, (5,000/15,0 (1,000/15,00 (2,000/15,00
on (sq. feet) 000 X 00 X 1,200) 0 X 1,200) 0 X 1,200)
building 1,200) 400 80 160
560
Depreciati Cost of 7,400 (90,000/12 (10,000/120 - (20,000/120,
on of machine 0,000 X ,000 X 000 X 7,400)
machinery 7,400) 7,400) 1,233
5,550 617
Power Power 8,000 (40/100 X (40/100 X (10/100 X (10/100 X
consumpti 8,000) 8,000) 8,000) 8,000)
on (kwh) 3,200 3,200 800 800
Utilities Floor area 5,600 (7,000/15, (5,000/15,0 (1,000/15,00 (2,000/15,00
(sq. feet) 000 X 00 X 5,600) 0 X 5,600) 0 X 5,600)
5,600) 1,867 373 747
2,613
Rent and Floor area 6,800 (7,000/15, (5,000/15,0 (1,000/15,00 (2,000/15,00
rates (sq. feet) 000 X 00 X 6,800) 0 X 6,800) 0 X 6,800)
6,800) 2,267 453 907
3,173
Total 106,200 49,196 29,584 14,352 13,114
overhead
Reapportionment :
Store No. of (30/70 X (20/70 X (14,352) (20/70 X
material 14,352) 14,352) 14,352)
requisition 6,171 4,162 4,162
Quality No. of (250/850 (600/850 X 0 (17,276)
control material to X 135,264)
be 135,264) 96,037
conducted 40,579
Store No. of (30/70 X (20/70 X 0) (0) (20/70 X 0)
material 0) 0 0
requisition 0
Total Production 106,200 95,946 129,783 - -
Overhead
5
(ii)
Mixing Packaging
Basis 10,000 hours 13,000 hours
Machine hours Direct labour hours
OAR (95,946/10,000 hours) (129,783/13,000 hours)
= RM9.60 / MH = RM9.98 / DLH
(iii)
Mixing Packaging
OH absorbed RM9.60 X 8,000 hours RM9.98 X 15,000
= RM76,800 = RM149,700
Actual OH RM78,000 RM32,000
Over/Under RM1,200 UNDER RM117,700 OVER
(iv)
SINGLE / BLANKET
Basis 10,000 hours
Machine hours
OAR (30,000/70)
= RM428.57 per single/blanket
(428.57/10,000)
= RM42.81 / MH
6
QUESTION 3
(a)
Sewing department Finishing department
Basis 5,000 hours 4,000 hours
OAR (RM10,000/5,000 hours) (RM12,000/4,000 hours)
= RM2 / DLH = RM3 / MH
(b)
Arora Dress
Job Cost Sheet for Job No. AD20
Particular RM RM
Direct Material:
Fabric silk 1,000
Fabric lace 900 1,900
Direct labour:
Sewing department - RM2.50 X 80 hours 200
Finishing department - RM2.50 X 90 hours 225 425
Direct expenses:
Hire of special sewing machine 800
Prime cost 3,125
Add: Production overhead
Machine hours:
Sewing department - RM2 X 45 hours 90
Finishing department - RM3 X 50 hours 150
Total production cost 240
Add : non-production overhead
Administration expenses 2,500
Selling overhead 800 3,300
Total cost 3,540
Profit - (25/75) X RM3,540 1,180
Total selling price 4,720
(c)
I. Required high skilled labour in completing the job
II. Each job produced according to customer’s requirement
III. The cost for each job is charged separately
