CT Question April 2019
CT Question April 2019
CT Question April 2019
INSTRUCTIONS TO CANDIDATES
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this test pack consists of:
QUESTION 1
A. Users of accounting information can be broadly divided into internal parties within
organization and external parties outside the organization. You are given with the
following users:
Required:
a. Classify the above users of accounting information whether they are internal
users or external users.
(2 marks)
b. Identify ONE (1) use of accounting information to each of the above users.
(4 marks)
QUESTION 2
As the management accountant of the company, the management requests you to prepare
the variance analysis on product Nero. For the month of April 2019, the budgeted production
and sales of Nero are 20,000 units. The company plans to sell Nero at a price of RM60.00
per unit.
The estimated direct material (Material A) purchased and used is 20,000 kgs at the price of
RM20.00 per kilogram. Normally the direct labours work 30,000 hours per month and they
are paid at a rate of RM10.00 per hour.
The standard variable overhead and fixed overhead costs were RM9.00 and RM4.00 per
unit respectively. It is the policy of the company to absorb variable overhead cost based on
direct labour hours while fixed overhead is absorbed based on units produced.
At the end of the month, the company identified that the actual production and sales were
22,000 units, while the actual selling price per unit was RM65.00. The additional data
available for the month is as follows:
Required:
c. Prepare a statement reconciling the budgeted profit and the actual profit for the period.
(3 marks)
QUESTION 3
Anggun Muslimah Sdn Bhd produces and sells special attire for Muslim women. A set of
product consists of soft cardigan matched with a scarf of the same material and design. The
company uses special fabric which is imported from China and Vietnam.
Currently, the company is facing a problem of resources that caused the company to decide
on the production mix to be produced next year based on the available resources. The
following information relates to the production and sales for the three sets of products,
namely Exclusive Set, Elegant Set and Stylish Set.
Additional information:
i. Direct labour rate is RM20.00 per hour, while special fabric cost is RM25.00 per meter.
ii. There will be 36,000 meters of special fabric supplied from China and 20,000 meters
supplied from Vietnam throughout the year.
iii. Company pays sales commission to their sales personnel at a rate of 10% of the
selling price.
iv. The fixed production overheads are absorbed into the products based on direct labour
hours. The total budgeted direct labour hours available are 30,640 hours and the fixed
overheads for the period are budgeted at RM383,000.
v. The fixed administration expenses are expected to be RM1,000 per month.
Required:
a. Compute any excess and/or shortage of direct material and direct labour for next year.
(4 marks)
b. Suggest to the management of Anggun Muslimah Sdn Bhd on the most optimal mix of
products to be produced next year, considering the limited resources determine in (a)
above.
(11 marks)
c. Based on your suggestion in part (b) above, determine the total net profit that will be
obtained by Anggun Muslimah for next year.
(2 marks)
(Total: 17 marks)