In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle helmets. SoundSmart Company has recently incurred direct materials costs of RM70 per unit, direct labour costs of RM10 per hour, and indirect materials costs of RM5 per helmet. A helmet usually takes 5 hours to complete. The SoundSmart Company produces 120,000 units per year. These helmet sell for RM300 each. SoundSmart Company had 5,000 units in work in process inventory and 7,000 units in finished goods inventory at the beginning of the year. At the end of the year, there were 15,000 units in work in process inventory and 5,000 units in finished goods inventory. On 31 December 2021, the accounting records of SoundSmart Company showed the following information for the year 2021: RM Factory Equipment Rent (RM9,000/ Month) ? Supervisor Salary ( RM3,700 / Month) ? Factory Maintenance 15,600 Sales Salaries Expense 135,000 Supplies (70% factory) 15,000 Utilities (70% factory) 24,000 Depreciation Expense: Factory Building 7200 Factory Machine 5000 Office Equipment 3000 Indirect Labour 60,000 Factory Property Taxes Delivery Expenses 6,000 7,000 Administrative Expenses 20,000

In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle helmets. SoundSmart Company has recently incurred direct materials costs of RM70 per unit, direct labour costs of RM10 per hour, and indirect materials costs of RM5 per helmet. A helmet usually takes 5 hours to complete. The SoundSmart Company produces 120,000 units per year. These helmet sell for RM300 each. SoundSmart Company had 5,000 units in work in process inventory and 7,000 units in finished goods inventory at the beginning of the year. At the end of the year, there were 15,000 units in work in process inventory and 5,000 units in finished goods inventory. On 31 December 2021, the accounting records of SoundSmart Company showed the following information for the year 2021: RM Factory Equipment Rent (RM9,000/ Month) ? Supervisor Salary ( RM3,700 / Month) ? Factory Maintenance 15,600 Sales Salaries Expense 135,000 Supplies (70% factory) 15,000 Utilities (70% factory) 24,000 Depreciation Expense: Factory Building 7200 Factory Machine 5000 Office Equipment 3000 Indirect Labour 60,000 Factory Property Taxes Delivery Expenses 6,000 7,000 Administrative Expenses 20,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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