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FACULTY OF ACCOUNTANCY
FUNDAMENTAL OF COST ACCOUNTING

PTOJECT TITLE : COST INFORMATION OF PRODUCING 20 CAKES FOR

SWEETS BAKERY

PREPARED BY :

NAME MATRIKS NO
JUENNYTY SIKUK@JUSTIN 2022809138
MARCHELLY OCTOVIA OCTOVARINO 2022499572
MOHD DANIAL HANAFFI BIN MUSTAFFI 2022855078
MUHAMMAD AFIQ ZAFRAN BIN ZAKARIA 2022492174

PREPARED FOR:
SIR SURAIL BIN ABDUL KAHAR@ETING
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TABLE OF CONTENTS

NO PARTICULAR PAGE
1 ACKNOWLEDGEMENT 3
2 INTRODUCTION OF BUSINESS 4
3 CLASSIFICATION OF ELEMENTS PRODUCTS 5-6
4 PICTURE OF MATERIALS 7-17
5 SOURCE DOCUMENTS 18-19
6 DEFINITION OF COSTS STATEMENT 20
7 OBJECTIVE OF COST STATEMENT 21
8 COST STATEMENT OF PRODUCT 22-23
9 CONCLUSION 24
10 REFERENCES 25
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ACKNOWLEDGEMENT

First and foremost, we would like to express our gratitude to the Almighty God for
granting us the idea and enabling us to accomplish our group assignment MAF151. It is His
guidance that we can develop our knowledge about business management through cost
accounting and give other opportunity the idea through our group assignment.

We also would like to thank Sir Surail bin Abdul Kahar @ Eting for giving us this great
opportunity to express our dreams about opening a business. Without his support,
encouragement, and commitment towards us during classes, we would not be able to
understand the concepts of cost accounting which is very important to us for the future. We
are grateful for having Sir Surail as our lecturer throughout our semester.

In addition, we also thankful for having each other as a team which consists of
Marchelly, Afiq, Danial and Juennyty during our group assignment who have devoted our
own time and effort to accomplish this assignment.

We are also grateful to our friends and family for their support, love, and
encouragement in our assignment process.

To finish, we would like to thank our superiors, the academic staff at the University of
Technology MARA (UiTM), as well as other universities who have constantly shared their
opinion and knowledge to us in this journey of making up our business in MAF151.
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INTRODUCTION OF THE COMPANY

Cakes are one of the most popular food. Therefore, on 1st January 2023, our company
started a business called Sweet Bakery with a capital amount of RM150,000 which is selling
various types of cakes using our own recipe and s, also include transportation services for
delivery outside the city.

This business is open every day except Sunday and operation hours start from 8:00 AM to
6:00 PM. Customers can seek information and updates through our social media Instagram,
Telegram and Facebook called ‘SweetBakeryOnline’.

The type of this company for this business is sole proprietorship. We chose to have it this
way because it always is our dream to have a successful business.

This bakery shop specializes in making custom cakes for weddings, birthdays and et cetera.
The average price of our cakes is RM42.50. This company has 3 employees who play different
roles every day such as making cakes, front counter, receiving orders from calls and being a
supervisor.
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COST CLASSIFICATION

FUNCTION NATURE BEHAVIOUR

PRODUC NON- DIRE INDIR FIX VARIA SEMI- ST
TION PRODUC CT ECT ED BLE VARIA EP
TION BLE
Sugar / / /
Wheat / / /
flour
Butter / / /
Cocoa / / /
powder
Conden / / /
sed
milk
Baking / / /
soda
Dark / / /
chocola
te
Baking / / /
powder
Salt / / /
Eggs / / /
Powder / / /
ed
sugar
Vanilla / / /
extract
Corn / / /
oil
Whippi / / /
ng
cream
Salaries / / /
for
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skilled
worker
s
Wages / / /
for
part-
time
worker
s
Utilitie / / /
s
Oven / / /
Mixer / / /
Baking / / /
pans
Chiller / / /
Turntab / / /
le
Spatula / / /
Piping / / /
bag
Cake / / /
board
Salary / / /
for
owner
Busines / / /
s
license
Deliver / / /
y cost
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COST ELEMENTS
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MATERIAL REQUESITION FORM

DATE:1 JAN
REQUEST TO: CKS SUPERMARKET
MATERIAL REQUEST NO:

Quantity UOM Description Unit Price Total Price

1 unit Oven $ 2,500.00 2,500
1 unit Mixer $ 1,000.00 1,000
1 unit Baking Pans $ 20.00 20
1 unit Chiller $ 4,000.00 4,000
200 gram sugar $ 3.00 12
180 kg wheat flour $ 4.00 14.4
240 gram butter $ 25.00 120
120 gram cocoa powder $ 13.50 32.4
150 gram condensed milk $ 4.50 27
6 gram baking soda $ 2.20 2.64
170 gram dark chocolate $ 35.00 119
6 gram baking powder $ 2.50 3
6 gram salt $ 2.50 0.75
3 tray eggs $ 15.00 30
100 gram powdered sugar $ 2.80 5.6
5 ml Vanilla extract $ 2.50 8.3
240 ml corn oil $ 9.50 45.6
240 ml whipping cream $ 11.50 55.2
1 unit turntable $ 12.00 12
1 unit spatula $ 8.00 8
1 unit piping bag $ 9.00 9
1 unit cake board $ 6.00 6
TOTAL 8,031
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PURCHASE REQUESITION FORM

PURCHASED FORM: CKS

SUPERMARKET
PURCHASED FORM: CKS
SUPERMARKET

Item Item

Catalog # & Complete

Description (including
Category notes & buyer notes) Quantity Unit Price Total

DIRECT MATERIALS SUGAR 200 GRAM 3.00 PER 1 KG RM 12.00

DIRECT MATERIALS WHEAT FLOUR 180 GRAM 4.00 PER 1KG RM 14.40

DIRECT MATERIALS BUTTER 240 GRAM 25.00 PER 1 KG RM 120.00

DIRECT MATERIALS COCOA POWDER 120 GRAM 13.50 PER 1 KG RM 32.40

4.50 PER 500

DIRECT MATERIALS CONDENSED MILK 150 GRAM GRAM RM 27.00

2.20 PER 100

DIRECT MATERIALS BAKING SODA 6 GRAM GRAM RM 2.64

DIRECT MATERIALS DARK CHOCOLATE 170 GRAM 35.00 PER 1 KG RM 119.00

2.50 PER 100

DIRECT MATERIALS BAKING POWDER 6 GRAM GRAM RM 3.00

2.50 PER 400

DIRECT MATERIALS SALT 6 GRAM GRAM RM 0.75

15.00 PER 1
DIRECT MATERIALS EGGS 3 TRAY TRAY RM 30.00

DIRECT MATERIALS POWDERED SUGAR 100 GRAM 2.80 PER 1 KG RM 5.60

DIRECT MATERIALS VANILLA EXTRACT 5 ML 2.50 PER 30 ML RM 8.30

9.50 PER 1
DIRECT MATERIALS CCORN OIL 240 ML LITTER RM 45.60

11.50 PER 1
DIRECT MATERIALS WHIPPING CREAM 240 ML LITTER RM 55.20

TOTAL RM475.89
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DEFINITION OF COST STATEMENT

The cost statement is the statement that contains direct materials, direct labour, direct
expense, production overhead, and all non-production cost. A cost statement can be very useful
and essential for the business as the business can trace how much they spend to prepare a certain
product and the total cost for the production.

The cost that can be traced to a specific cost product is known as a direct cost. In contrast,
the cost that is not directly traceable to a particular cost product and incurred for multiple cost
objectives is called indirect cost.

The overall cost for direct labour, direct expenses, and direct materials can be classified
as prime costs. Next, overheads are other general business expenses attributable to
manufacturing the product. Production overhead contains all total indirect cost which is,
indirect material, indirect labour, and indirect expenses. The total amount for prime cost and
production overhead is known as production cost.

Non-production cost is the cost that involves the cost after the product being produced
until it reaches customers. This includes marketing cost, administration, finance, research and
development. Marketing cost is the cost incurred in selling, advertising, distributing and
product servicing such as discount, commission, transport and storage. Administration is the
cost incurred in the general administration, directing and controlling the operations such as
audit fees, light and insurance. Finance is the cost incurred in the financing activities of the
business such as interest, insurance, dividends and loan. Research is the cost incurred in seeking
new and improved ideas, material, methods and products such as laboratory cost, researcher
and study cost. Development is the cost incurred in developing the new improved ideas and
methods such as cost of tests and cost of trials. The total cost for prime cost, production
overhead and non-production cost called as total cost.
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OBJECTIVES OF COST STATEMENT

➢ Disclose various elements of cost

➢ Disclose the cost per unit for each product
➢ To measure and evaluate the actual performance
➢ To plan operation of the business such as, short-term planning and
long-term planning
➢ To ascertain the profit of each product produced
➢ To determine the selling price of each product being produced
➢ To provide information to the owner for decision making purpose
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SWEETS BAKERY
COST STATEMENT FOR THE MONTH OF JANUARY 2023

RM RM

DIRECT MATERIAL

Sugar 12

Wheat flour 14.40

Butter 120
Cocoa powder 32.40

Condensed milk 27

Baking soda 2.64

Dark chocolate 119

Baking powder 3

Salt 0.75

Eggs 30
Powdered sugar 5.60

Vanilla extract 8.30

Corn oil 45
Whipping cream 55.20 457.29

DIRECT LABOUR

Salaries for skilled workers (RM1,200 x 3 person) 3,600

Wages for part-time workers (RM8 x 8 hours x 3 days x 3 576 4,176

person)

DIRECT EXPENSE

Utilities 800

TOTAL PRIME COST 5,433.29

PRODUCTION OVERHEAD COST

INDIRECT MATERIAL
Oven 2,500
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Mixer 1,000

Baking pans 20

Chiller 4,000

Turntable 12

Spatula 8.90

Piping bag 9

Cake board 6 7,555.90

INDIRECT LABOUR

Salary for owner ( 12% x RM150,000) 18,000

INDIRECT EXPENSE

Company license 90

Delivery cost (RM5 x 31 days ) 155 245

TOTAL PRODUCTION OVERHEAD COST 25,800.90

TOTAL PRODUCTION COST 31,234.19

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CONCLUSION

Cost accounting systems are considered as a new format for the presentation of the cost
statement is cost accounting. The cost statement is very useful for increasing labour and
material utilization efficiency, maximizing profit, and realizing a higher profit for the company.
Consequently, the most crucial thing a business should do is decide which products will bring
in the most money. Cost statements are also very helpful because they allow a company to set
a product's selling price after taking operational costs for production into account. Additionally,
cost statements give information to the company and aid in future decision-making.

In conclusion, we decide to open a business of producing cake that known as SWEETS

BAKERY were just started on 1 January 2023 and the starting is capital RM 150,000.This
business decide to produce 20 cakes in one month which consists the materials for making the
cakes also it being divided into two categories which is direct material, indirect material and
non-production cost. Whereas, the total prime cost is RM 5,433.29 and include the amount of
indirect expenses is RM 25,800.90 that make all the total for production cost is RM31,234.19
when we total up all the amount. Last but not least, we decide to decrease our production cost
by limiting the uses of indirect expenses so that we can focus on gain more profit in selling this
cake later also it will reduce our production cost in future.
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REFERENCES

Prices of goods and services | GlobalProductPrices.com. (n.d.).

Www.globalproductprices.com. https://www.globalproductprices.com/

What Is a Cost Sheet? (2019, September 2). Essential Business Guides.

https://www.zoho.com/books/guides/cost-sheet.html