MANUFACTARING ACCOUNT REPORT (GROUP4)1

KOLEJ PROFESIONAL MARA BANDAR MELAKA

FINANCIAL ACCOUNTING FOR BUSINESS 2
ACC 1023

MANUFACTARING ACCOUNT

Prepared by:

No. Students’ Name Id Number Class
1. ANNUR WARDINA HUMAIRA BT BMF20-11-004 DBF2A

AZLAN BMF20-11-017 DB2A
2. NUR RIFFA ADIBBA BT TASRIN BMF20-11-002 DBF2A
3. ALIS IZYAN BT AHMAD FARID BMF20-11-012 DBF2A
4. NUR AIN SOFIYA BT MOHD AMIN BMF20-07-071 DBF3A
5. NUREEN SABRINA BT MOHD FAIEZAL

Prepared for:
MADAM MUNIRAH BINTI SALIM

Date of Submission:
25 APRIL 2021

ACKNOWLEDGEMENT

We are really grateful because we managed to complete our assignment of
Manufacturing Account for course Financial Accounting for Business 2 (ACC1023) within the time
given by our subject lecture, Madam Munirah Binti Salim. The completion of this assignment could
not have been possible without the effort and cooperation from our group members, whose is
Annur, Adibba, Ain, Alis and Nureen. Each of our contribution are sincerely appreciated and
gratefully acknowledged.

We also sincerely gave a big thanks to our lecturer, Madam Munirah for the guidance
and encouragement in completing this assignment and also teaching us this course some of topics
for us make sure understand what we have to do. We work hard to complete the assignment for
a given period of 4 weeks or almost a month. For these for weeks, we already make a team and
gave cooperate to finished the assignment.

Last but not least, we would like to thank our relatives and friends who in a way shared
their support, both morally, physically and financially also the team members who always gave
cooperate to finished the assignments till the due date. That's the important thing to share and
gave thanks to all of them for helping about this assigned. And that's all from us, thank you very
much.

TABLE OF CONTENTS PAGE NUMBER
1
NO. CONTENS 2
1. Introduction 3
2. Background of Company 4-5
3. Information About The Product Manufactared 6-8
4. Manufactaring Account
5. Financial Account 9

6. Conclusion 10
11-15
7. References
8. Appendics

1. INTRODUCTION
A manufacturing account is an accounting statement that used to accumulate all

the main items of manufacturing cost with a view to determine the cost of finished goods
manufactured during an accounting period.

The purpose or the primary object of preparing a manufacturing Account is to
calculate total of production cost of completed goods or to ensure the total of profit or
loss of an entity.For the importance of manufacturing organizations,manufacturing
accounts need to be prepared as a part of final accounts in addition to trading
account,Profit or Loss Account, and Financial Position Account.

The point to prepare a manufacturing account is to calculate the total cost of
production.Next,trading and profit or loss account is to find out the net profit or
loss.Lastly,the aim to prepare the financial position account is to show the financial
position of the business.

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2. BACKGROUND OF THE COMPANY

This small-scale manufacturing business is a snack business which is keropok lekor.
The name of this business is Keropok Lekor Trading that started on 1 March 2021.The
accounting period of this business is on 1 March 2021 until 31 March 2021.We are five namely
Annur Wardina Humaira, Alis Izyan, Nur Riffa Adibba, Nur Ain Sofiya and Nureen Sabrina have
joined hands as a group to run this keropok lekor business. We have funded a capital of
RM20000 from investors to start this business. We started our business by selling keropok
lekor ‘losong’. We chose to run this business because one of us is good at making keropok
lekor. Besides, keropok lekor is one of popular snacking food in Malaysia or also known as
fish sausage.

Our vision is everyone’s favorites keropok lekor. Our missions is to maximize
productivity, making buyers always keep in mind the taste and quality of our keropok lekor
and producing skills worker shave in terms of making keropok lekor.

The organizational chart of this company is lead by Nur Ain Sofiya as a manager of this
business.Annur Wardina as lead supervisor.Alis Izyan,Riffa Adibba and Nureen Sabrina as our
staffs.

MANAGER OF
BUSINESS

NUR AIN SOFIYA

LEAD
SUPERVISOR

ANNUR WARDINA

STAFF 1 STAFF 2 STAFF 3
RIFFA ADIBBA
ALIS IZYAN NUREEN SABRINA

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3. INFORMATION ABOUT THE PRODUCT MANUFACTARED
Our business’s product is keropok lekor,We namely our product as Crunchy Lekor

because our keropok lekor is very crunchy when you deep-fried it and it was a favourite
texture keropok lekor of Malaysians.

Our product was made with love using fish which is ikan parang or ikan kembong,sago
flour,salt,sugar,water and pandan leaves.We also use fresh chillies and belacan for our
homemade chilli sauce.We also pack it in thick high quality of plastic.Then,we vacuum it,so
that the keropok lekor can last for a long time.

For starter,we produce 6000 units or pack of keropok lekor.The weight within 1kg per
unit.We manage to sell 5200 unit per 6000 unit.It was a great starter for our small
manufacturing business.We hope from this first achievement,we can have a place in buyer’s
heart.

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4. MANUFACTARING ACCOUNT

Keropok Lekor Trading
Manufactaring Account for the month ended 31 Mac 2021

Opening inventory of Raw Material RM RM
(+)Purchase of Raw Material 0

Carriage inward of Raw Material 10000
Wages of Raw Material 600
2800
(-)Closing inventories of raw material
Cost of Raw Material Consumed 13400
(7000)
6400

Direct Labour 8000
Direct Wages 5670
Production Wages

Direct expenses 4800
Royalties 2200
Trademark 27070

PRIME COST

Indirect Cost 2600 21000
General Factory expenses 4000 48070
Electricity 3400 3000
Supervisor's salaries 9000 51070
Factory Rent 2000 (2800)
Indirect material 48270
Total Production Cost 9654
(+)Opening work in progress
57924
(-)Closing work in progress
Production cost of completed goods
(+)Manufactaring Profit (20% x 48270)
Total Production Cost to be transfer to SOPOL

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• Cost per unit =total production cost ÷ units produce
=RM48270 ÷ 6000
=RM8.05

• Selling Price per unit =% x cost per unit
=150% x RM8.05
=RM12.08

• Sales = Selling price x units sales
=RM12.08 X 5200
=RM62816

5

5. FINANCIAL ACCOUNT
a) STATEMENT OF PROFIT OR LOSS
Keropok Lekor Trading
Statement of Profit or Loss for the month ended 31 Mac 2021

RM RM RM
62816
Sales (RM12.08 X 5200) (266)
(-)Return Inwards 62550
Net Sales
(26505)
(-)Cost of Goods Sold 0 36045
Opening Inventory of Finished Goods 48270 9654
(+)Cost of Completed Goods 48270 45699
(765)
(-) Return Outwards 47505 2850
(21000) 48549
(-)Closing Inventories of Finished Goods
Gross Profit (40700)
(+)Manufactaring Profit 7849

(+)Revenues 1400
Discount Received 1450
Commision Received
4000 29000
(-)Expenses 3200 8100
Administrative expenses 1800 3600
Rent 20000
Utilities
Depreciation of Machinery (12% x15000) 6000
Wages and salaries (18500+1500) 2100
Selling and Distribution expenses
Depreciation of Motor Vehicle(24% X RM25000) 3600
Marketing and distribution expenses

Financial Expenses
Interest on Loan(6% x 60000)
Net Profit

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Adjustment:
1.Depreciation on machines is at 12% per annum on cost,and depreciation on motor vehicle is
at 24% per annum on cost.
1.Wages and salaries accrued at 31 Mac 2021 were RM1500.

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b) STATEMENT OF FINANCIAL POSITION

Keropok Lekor Trading
Statement of Financial Position as at 31 Mac 2021

Non Current Asset RM RM RM
Machines 13200
Motor vehicles 15000 (1800) 19000
25000 (6000) 32200
Current Assets
Inventory: 7000 58149
2800 90349
Raw Materials 21000
Work in Progress 14240 26849
Finished Goods 13109 60 000
Bank
Cash 3500
Total Assets 90349

Financed by: 20 000
Owner’s Equity 7849
Capital 27849
Add:Net profit (1000)

Less:Drawings 60000

Non Current Liabilities 2000
6% Loan from Bank 1500

Current Liabilities
Account Payable
Accrued Wages and Salary
Total Owner’s Equity and Liabilities

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6. CONCLUSION
Praise be to Allah, finally our group managed to finish this Manufacturing Account Assignment.

This project would not have been possible done without the constant cooperation, assistance and
guidance of our subject lecturer, Madam Munirah and colleagues.

Through this project, we were able to learn a lot of new things like build a great teamwork
to discuss about the product that we want to produce. The most important thing we learned how
to apply the learning outcomes of this topic for our assignment.

We felt very happy to be able add a lot of new knowledge through this assignment as well
as to strengthen relationships with teammates. We always help to complete each other
respectively and through this we managed to complete the given task. So, through this
knowledge, we can use it in the future for tasks or maybe one day we will be a new entrepreneur
that want to produce a product that require this knowledge.

So, we were really thankful for being given the opportunity to learn about manufacturing
account and we will make good use of it by applied in the related situation in the future.

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7. REFERENCES

i. Reference Book
• Mohmad,M.(2020). ACC1023 Financial Accounting For Business 2.
Beranang:KPM Beranang,Selangor.

ii. Google Links
• Solis, N.(2019). Small Business Organizational Chart. [Online Article].
Retrieved March 20,2019 from the https://broadly.com/blog/small-business-
organizational-charts/
• Bragg, S.(2021). How to calculate cost per unit. [Online article]. Retrieved April
19, 2021 from the worldwideweb:
https://www.accountingtools.com/articles/how-to-calculate-cost-per-unit.html

• Ramly, R.(2010), Keropok Lekor.The Making. [Online article]. Retrieved
August 8, 2010 from the worldwideweb:
https://www.flickr.com/photos/ramzyramly/4925348180

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8. APPENDICS

NAME: ANNUR WARDINA HUMAIRA BINTI AZLAN CLASS: DBF 2A

ID NO: BMF 20-11-004 GROUP NAME: GROUP 4

INDIVIDUAL REFLECTION
At least 3 entries:
One Problem faced, One Comment and One Suggestions

1. One problem I faced when making this assignment was, when me and the group
members could not complete the account statement properly. For me it is not difficult
but due to my lack of understanding of the title we feel it is difficult.

2. When my lecturer had told us that we would be studying a chapter on the topic of
this assignment, we felt less of a problem as it could to some extent help us in
completing this statement. But there are still some mistakes and it teaches us not to
repeat later.

3. The suggestions I can give are for myself. When there is a topic that has not been
studied later, I can study with it myself, because that can further strengthen my
understanding when my lecturer teaches it later. If I don’t quite understand, I can
ask my lecturer and she can help me little by little.

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NAME: NUR RIFFA ADIBBA BINTI TASRIN CLASS: DBF2A

ID NO: BMF20-11-017 GROUP NAME: GROUP 4

INDIVIDUAL REFLECTION
At least 3 entries:
One Problem faced, One Comment and One Suggestions

1. Problem that I faced during doing this assignment is my lack of understanding about
Manufacturing Account especially about how to classify the items and the
preparation of final accounts.

2. Even though this topic not already learn yet as my classmates and I already start
doing this assignment, but I am grateful that our lecturer gradually teaches us. So,
it makes more easier to comprehend about the assignment given.

3. My suggestion that for myself is although my lecturer gave the topic that I’ve not
already learn it yet to my classmates and I, but I can learn it by myself. And if I
really don’t get it, I can seek help from my friends and my lecturer. By that it can
gain my understanding little by little.

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NAME: ALIS IZYAN BINTI AHMAD FARID CLASS: DBF2A

ID NO: BMF20-11-002 GROUP NAME: GROUP 4

INDIVIDUAL REFLECTION
At least 3 entries:
One Problem faced, One Comment and One Suggestions

1. The problems that I faces during completing this Manufactarung Account Assignment
is lacking of information about this topic especially the way to classification the items
under the right account.

2. I studied this chapter in high school and for me it’s a little bit confusing if I don’t pay
attention but using the knowledge that I know,we do the assignment earlier and it
stuck in the middle but it such a relief when Madam Munirah teaches us about this
chapter and its actually help us a lot.

3. Aware of this problem,I have suggested to increase my knowledge by study this
chapter byself and also make some exercises of this chapter to further solidify my
knowledgement.In close,this suggestion had helped my process to help my
groupmates completing this assignment

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NAME: NUREEN SABRINA BINTI MOHD FAIEZAL CLASS;DBF3A

ID NO: BMF20-07-071 GROUP NAME: GROUP 4

INDIVIDUAL REFLECTION
At least 3 entries:
One Problem faced, One Comment and One Suggestions

1. Problem that I faced during doing this assignment is my lack of knowledge about
manufacturing account especially about how to calculate and the preparation of final
accounts.

2. When the first time, me and my group members received this assignment, it was a
bit hard because its not learned yet but glad that we have a supportive lecturer who
is always guide us during this preparation of assignment.

3. My suggestion is by receiving the topic that not learned yet can make myself be
independent of searching any problems and can learn by myself, this also can help
my friends to learn how to teach other friends and share the knowledge.

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NAME: NUR AIN SOFIYA BINTI MOHD AMIN CLASS: DBF2A

ID NO: BMF20-11-012 GROUP NAME: GROUP 4

INDIVIDUAL REFLECTION
At least 3 entries:
One Problem faced, One Comment and One Suggestions

1. The problems that I faces during doing this assignment I don’t know about
manufacturing account and how to classification the items .

2. I was scared and don’t have idea to do the assignment . But teachers and my friend
teach and guide me to do better .

3. My suggestion is always improve myself to do better when something I don’t know and
how to finish it until complete .

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