MAF 151 : Cost and Management Accounting Assignment

No Name Student’s ID
1 Azra Hazirah Binti Mohamad Aziz 2019666324
2 Izzah Yusra Binti Ismail 2019224216
3 Nur Ainul Hannah Binti Untong 2019257294
4 Siti A'ainaa Arina Binti Yussri 2019258598
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COURSE: COST AND MANAGEMENT ACCOUNTING 1
COURSE CODE: MAF 151
SEMESTER: MARCH – JULY 2020
GROUP: AC110 2B
LECTURER: MADAM RASHINAH HOSSEN

Table of Contents:
No Contents Page Number
1 Acknowledgement 3
2 Description of the product
i, Name of product
ii. Cost elements
iii. Classify cost elements
 Nature
 Behaviour
 Function
iv. Pictures of the material
v. Source of document
4 - 9
3 Cost statement
i. Definition of cost statement
ii. Objectives of cost statement
iii. Cost statement of the product
10 – 11
4 Conclusion 12
5 Reference 13
2

ACKNOWLEDGEMENT
First of all, we would like to thank the almighty God that we were able to finish the
assignment assigned given by our Management Accounting (MAF151) lecturer, Miss
Rashinah Hossein on time. We also wanted to thank Miss Rashinah to give us the opportunity
to carry out this assignment and for the support and guidance in order to carry out and finish
this report.
We also wanted to thank our group members Izzah Yusra, Azra Hazirah, Hannah
Untong and Siti A’ainaa Arina for giving 100% efforts and hard work to ensure this report
would be carry out easily and aligned with the content wanted.
The objective of this report is to summarize and explain the cost and management
accounting in manufacturing Kek Batik Oreo. In this report is also to classify the cost
elements in producing Kek Batik Oreo into nature cost, behavior of the cost and the function
of the cost. In this report also we documented the cost, management and process of producing
Kek Batik Oreo in a video form. The source documents and proofs of the producing such as
receipts and the video of making Kek Batik Oreo will be recorded and explained further in
this report.
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Name of Product
he name of our product that we are producing is Kek Batik Oreo. The original name is Kek
Batik. Kek Batik is a very famous cake in Malaysia and prepared in different forms as a
sweet dessert that can be homemade or purchased in bakeries. Some says it is the same to the
English Chocolate Biscuit Cake which Prince William had as one of his wedding cakes.
In Malaysia, it is known as batik due to it having Batik-like patterns from the cracked
biscuits. Kek batik is one of the simplest cakes to make and less time consumed. It is the most
mouth-watering chocolate dessert perfect for kids and adults alike. This dessert only requires
a few ingredients. It might look modern, but the kek batik really is a recipe from Malaysia
long ago, just that we made some upgrades on the ingredients.
Kek Batik Oreo is made by mixing cracked Marie biscuits combined with melted Cadbury
Dairy Milk Chocolate, butter, condensed milk, Milo and for the topping is Oreo powder. It is
required to be put inside the fridge overnight before it can be eaten. The Kek Batik Oreo can
be served during special occasions such the Eid al-Fitr and Christmas.
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The Cost Elements
1. Nature of Costs:
Material Direct Material:
 Oreo packets
 Butter
 Chocolate bar
 Milo powder
 Condensed milk
 Marie biscuit
 Packing container
Indirect Material:
 Gloves
Labour Direct Labour:
 Baker
Indirect Labour:
 Cashier
 Packer
 Manager
Expenses Direct Expenses:
 Product delivery expenses
Indirect Expenses:
 Rent of the shop
 Salaries
 Packaging
 Advertisement
 Electricity bills
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2. Behaviour of Costs:
Fixed Costs  Rent
 Salary of cashier
 Salary of manager
 Salary of packer
 Advertisement
 Gloves
Variable Costs  Oreo packets
 Butter
 Chocolate bar
 Milo powder
 Condensed milk
 Marie biscuit
 Packing container
 Packaging
 Product delivery
expenses
 Salary of baker
Semi-variable Costs  Electricity bills
6

3. Functions of Costs:
Production Costs  Oreo packets
 Butter
 Chocolate bar
 Milo powder
 Condensed milk
 Marie biscuits
 Salary of baker
Administration Costs  Salary of manager
 Salary of cashier
 Electricity bills
 Rent of the shop
Selling and Distribution Costs  Product delivery expenses
 Advertising
 Packaging
7

Picture of Costs:
Source Document:
8

COST STATEMENT
Definition of cost statement:
A cost statement or a cost sheet is statement which shows all costs incurred, in tabular format,
which is the details regarding the total cost of the object. It shows various components of
cost. The components are labelled prime cost, production cost and total costs. The cost
statement of a business organisation provide an accurate into its performance and efficiency.
Objectives of cost statement:
Objectives of cost statement are to find the final total cost of the product and the cost of the
product per unit. It is also to identify the expenses of the incurred on the cost unit and to
identify the amount of each element of cost in the total cost. Other than that, it is to analyse
the cost statement comparatively. The cost statement are the basis to decide the selling price.
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Cost Statement in producing 50 units of Kek Batik in a month:
RM RM
Direct Material:
Oreo packets (RM5.60 x 50 units) 280
Butter (RM6.10 x 50 units) 305
Chocolate bar (RM8.90 x 50 units) 445
Milo powder (RM4.60 x 50 units) 230
Condensed milk (RM3.10 x 50 units) 155
Marie biscuits (RM4.40 x 50 units) 220
Packing container 10 pcs (RM19.70 x 5 units) 98.50
Direct Labour:
Salary of baker 1,200
PRIME COST 2,933.50
Add: Production Overhead
Indirect Material:
Gloves (100 pcs) 30
Indirect Labour:
Salary of cashier 950
10

Salary of manager 2,000
Salary of packer 900
Indirect Expenses:
Rent of the shop 350
Electricity bills 115
PRODUCTION COST 4,345
Add: Non-Production Overhead
Packaging costs (RM0.50 x 50 units) 25
Advertisement 150
Product delivery expenses (RM2 x 50 units) 100 275
TOTAL PRODUCTION COST 7,553.50
Conclusion:
To conclude our assignment, we could say that we are satisfied with our product and the
process of doing it. We enjoyed doing this assignment. The product that we produces are
valuable and accepted by the society not only in UiTM Kampus Samarahan area, but around
Samarahan and Kuching too. A lot of input and experience we get from doing this assignment
which is a good thing for not only us but for other groups too. We are glad that we get to
finish this assignment on time and can carry it out without any problem. Last but not least, we
would not be able finish this assignment on time and perfectly without our group member’s
effort and hard work. Not to forget our lecturer that helped us throughout this assignment and
our fellow classmates that helped us directly and indirectly. We get a lot of benefit and
advantages from doing this assignment. We hope what we gained from doing this assignment
will help us in the future.
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