Question

Segak Koleksi Company is a manufacturer of high quality work uniforms. The price of a uniform is RM150. The following are the costs involved in April with the production unit of 500 uniforms:

Cost Items

RM

Cost of fabric used Sewer Salary Patern Maker salary Salesman salary Salaries of workers repairing patent machines and sewing machines Salary of business owner assistant Sinage cost Electrical Cost – Department Patern & Sewing Depreciations Patern & Sewing Machines Advertising Cost Sinage Advertising Rental Cost Insurance Cost for production workers Building rental    Distribution as follow: Level 1: ½ used for administration, ½ for sales office. Level 2: used for productions tshirt and stores of raw material

18,400 7,000 4,000 1,500 2,000 2,500 600 700 5,000 3,000 1,400 2,000 6,000

a)   Calculated:

1. 1. Prime Cost – monthly
   2. Overhed Cost – monthly
   3. Period Cost – monthly
   4. Cost product per unit
2. One of items above is sunk cost. Define sunk cost and identify the items above.

Answer 1