ANSWER BOOKLET

MATRIC NO mc230521983
PROGRAMME Bachelor Of Business Administration (Hons) - Online
COURSE CODE BAAB1014
COURSE TITLE Business Accounting
SEMESTER Sep 2023
SECTION
DATE 16 December 2023

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Business Accounting (BAAB1014) CONFIDENTIAL
Final Examination September 2023

Matric No:mc230521983
Type or insert your scanned answer on this answer booklet.
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Question 1

a) Income Statement for the year ended 31 December 2022

Particulars RM

Sales 199,070

Less: Sales Returns (2,050)

Net Sales 197,020

Cost of Goods Sold

Opening Inventory 32,200

Purchases 73,500

Add: Carriage Inwards 3,570

Less: Purchases Returns (2,120)

Cost of Goods Available for Sale 107,150

Less: Closing Inventory (18,180)

Cost of Goods Sold 88,970

Gross Profit 108,050

Other Income

Interest Received 450

Commission Received 2,600

Total Other Income 3,050

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Business Accounting (BAAB1014) CONFIDENTIAL
Final Examination September 2023

Matric No:mc230521983
Particulars RM

Operating Expenses

Salaries 16,100

Electricity Bills 5,400

Custom Duty on Purchases 3,000

Insurances 450

Maintenance Expenses 3,300

Depreciation - Fixtures &

4,850
Fittings

Depreciation - Motor Vehicles 13,500

Total Operating Expenses 46,600

Net Profit 64,500

b) Statement of Financial Position as at 31 December 2022

Assets RM Liabilities RM

Non-Current Assets

Motor Vehicles 90,000 Bank Loan 50,000

Fixtures & Fittings 48,500

Less: Accumulated Depreciation - Motor

(29,500)
Vehicles

Less: Accumulated Depreciation - Fixtures &

(15,250)
Fittings

Net Non-Current Assets 93,750

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Business Accounting (BAAB1014) CONFIDENTIAL
Final Examination September 2023

Matric No:mc230521983
Assets RM Liabilities RM

Current Assets

Inventory 18,180

Account Receivables 37,700

Less: Allowance for Doubtful Debts (1,885)

Cash in Hand 6,800

Cash at Bank 25,200

Total Current Assets 88,880

Total Assets 182,630 Total Liabilities 50,000

Equity

Capital 50,000

Add: Net Profit 64,500

Less: Drawings (2,300)

Total Liabilities &

Total Equity 112,200 162,200
Equity

Question 2

Computation of Cost of Goods Manufactured, Prime Cost and Manufacturing Cost:

Schedule of Cost of goods Manufactured

Work in Process Inventory, Beginning 12,000
Direct materials:
Raw Materials Inventory, Beginning 6,000
Add: Raw Material Purchased 15,000
Raw Materials Available 21,000
Less: Raw Materials, Ending 8,000
Direct Material used in production 13,000

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Business Accounting (BAAB1014) CONFIDENTIAL
Final Examination September 2023

Matric No:mc230521983
Direct labor 10,500
Manufacturing Overhead:
Depreciation of Machinery 1,000
Insurance Exp (4500 x 80%) 3,600
Utilities Exp (2500 x 70%) 1,750
Factory Rent 2,000
Factory Supervision 3,000
Indirect labor Cost 3,500 14,850
Total manufacturing cost 38,350
Total Manufacturin costs to account for 50,350
Less: Work in Process Inventory, Ending 7,000
Cost of goods Manufactured 43,350

Prime cost = Direct material used + direct Labor cost

= 13 000 + 10 500
= 23 500

Question 3
To earn a profit of RM80,000, they must have 400 participants. If 900
participants are trained, Al-Jazimi Consultancy will earn a profit of RM160,000. To
achieve a profit of RM80,000 from 900 participants, Al-Jazimi Consultancy should
charge a fee of RM430 per participant.
To calculate the number of participants needed to break even, we divide the fixed costs
by the contribution margin per participant. The contribution margin is the selling price
per participant minus the variable cost per participant. In this case,
the contribution margin is RM250 - RM120 = RM130. Dividing the fixed costs of
RM52,000 by the contribution margin of RM130 gives us 400 participants needed to
break even. This means that Al-Jazimi Consultancy must enroll at least 400

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Business Accounting (BAAB1014) CONFIDENTIAL
Final Examination September 2023

Matric No:mc230521983
participants to cover all costs and not incur a loss. In terms of revenue, 400 participants
at RM250 per participant would generate the required RM80,000.
To earn a profit of RM80,000, we add the desired profit to the fixed costs and then
divide the sum by the contribution margin. Adding RM80,000 to the fixed costs of
RM52,000 gives us RM132,000. Dividing RM132,000 by the contribution margin of
RM130 yields approximately 1,015 participants. Therefore, Al-Jazimi Consultancy
must have around 1,015 participants to earn a profit of RM80,000.
If 900 participants are trained, the total contribution margin would be 900 participants
multiplied by the contribution margin of RM130, resulting in RM117,000. This would
translate into a profit of RM117,000 - RM52,000 = RM65,000.
To earn a profit of RM80,000 from 900 participants, we need to determine the required
contribution margin per participant. Subtracting the desired profit from the fixed costs
gives us RM28,000. Dividing this by the number of participants (900) gives us the
contribution margin per participant of approximately RM31.11. Adding this to
the variable cost per participant of RM120 gives us the fee that Al-Jazimi Consultancy
should charge, which is approximately RM151.11. However, since the profit is desired
to be RM80,000, we need to increase the fee. Dividing the desired profit of RM80,000
by the number of participants (900) gives us a contribution margin per participant of
approximately RM88.89. Adding this to the variable cost per participant of RM120 gives
us the final fee of RM208.89.

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Business Accounting (BAAB1014) CONFIDENTIAL
Final Examination September 2023

Matric No:mc230521983

*** END OF ANSWER SHEET ***

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