Financial Accounting and Variance Analysis Assignment Questions

Question 1

The following balances were extracted from the books of Ali Maju Enterprise (AME), a sole trader on 31 December 2024.

Ali Maju Enterprise

Trial Balances as at 31 December 2024

As at 31 December 2024, the following additional information is available:

Additional Information:

1. Closing inventories as at 31 December 2024 were RM34,650.
2. Depreciation is to be provided at the following rates:
   • Furniture: 10% on reducing balance method
   • Motor vehicles: 15% on cost
3. Additional bad debts of RM470 are to be written off and the provision for doubtful debts is to be set at 2% on the balance of trade receivables at year-end.
4. Adjustments are as follows:
   • The yearly rental is RM6,000.
   • The salary expenses are RM900 per month.
   • Accrued utilities is RM130.

Required:

a) Prepare AME’s Income Statement for the year ended (post adjustments) for the year ended 31 December 2024. (15 marks)

b) Prepare AME’s Statement of Financial Position (post adjustments) as at 31 December 2024. (10 marks)

(Total: 25 Marks)

Question 3

Pak Ali Western produces a single product of frozen lamb chops, and the following forecast information is available for the year ending 31 March 2024.

Cost per unit produced RM

• Direct materials 22
• Direct labour 18
• Variable production overheads 11

The projected sales price is RM70 a unit, and the company’s budgeted level of sales is 20,000 units for the year. The fixed costs are RM120,000 per annum.

Required:

a) Compute the number of products needed to break even (in units and RM). (10 marks)

b) How many products must be sold to earn a profit of RM100,000. (5 marks)

Answer

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