FACULTY OF ACCOUNTANCY

FUNDAMENTAL COST ACCOUNTING

MAF151

PROJECT TITLE:
PRODUCT – TELEKUNG

MEMBER OF THE TEAM PROJECT:

AMIRAH SAFWA BINTI MOHD SHAFEE’E 2020868224 AC1102C

NUR FATIHAH BINTI MOHD AZLAN 2020464378 AC1102C
NURUL SYAZA AISYAH BINTI YOSRI 2020851836 AC1102C

PREPARED FOR:
MADAM SUNARTI BINTI HALID

MAC – JUL 21
 TABLE OF CONTENTS

NO CONTENTS PAGE
i. Acknowledgement 3
ii. a. Description of product 4 - 19
i. Name of product
ii. Identify the cost elements to produce the product
iii. Classify the cost element into:
• The nature
• The behaviour of the cost
• The function of the cost
iv. Picture of the materials
v. The source document / evidence of the cost incurred to
produce the product
b. Cost statement 20 - 22
i. Definition of cost statement
ii. Objectives of cost statement
iii. Prepare a cost statement of your product
iii. Conclusion 23
iv. References 24

Page 2 of 24
 ACKNOWLEDGEMENT

First and foremost, we would like to express our deepest gratitude to Allah. He specializes in
the impossible, enabling ordinary people like us to do many things at once. He strengthened us
in completing this report. With his guidance, we have completed this report successfully before
the due date.
It would be very unfair if we start to post our report by only giving credit to ourselves
and without mentioning all the people that helped us to develop, polish and also improved on
our report.

We are overwhelmed in all humbleness and gratefulness to acknowledge our depth to

all those who have helped us in completing this report. We would like to thank our lecturer,
Madam Sunarti who taught us and gave some ideas directly or indirectly to her students.

We also would like to thank each other because we helped in resolving the
misunderstanding of the work given in this project as well as have contributed ideas so that we
can open our minds to think rationally.

Any attempt at some level cannot be satisfactory completed without the support and
guidance from our beloved parents. We are extremely grateful to our parents for their love,
prayers, caring and sacrifices for educating and preparing us for our future. They gave us
words of encouragement and support morally and financially in completing this project.

Finally, our thanks go to all the people who have supported us to complete this report
directly or indirectly.

Page 3 of 24
a. Description of the product
i. Name of the product

Atheesya Apparel Sdn Bhd has released a product named Nefertari Aisyah. Nefertari
Aisyah is a pair of prayer outfit that may be worn by both young and old people. For
women, they need a prayer outfit that is comfortable to wear when performing the
prayer.

These are the benefit of Nefertari Aisyah. Nefertari Aisyah is made from high-
quality material of poplin fabric that is less wrinkled fabric and has a cooling effect.
As a result, it might bring comfort to the wearer. Aside from that, there is a forehead
pad and a chin pad on the face of the prayer outfit. The chin pad is made of lycra
fabric, while the forehead pad is made of a high-quality soft elastic band that gives
more comfort, is ideal for all face types, does not quickly expand, and dries quickly
after washing. The specialty of Nefertari Aisyah is a prayer outfit with a pocket to
make it easy for women to attend to the mosque or do umrah or hajj. They no longer
need to carry a bag to store vital stuff; instead, they just place the goods in the given
pocket.

The calligraphic art theme influenced the design for Nefertari Aisyah. Nefertari
Aisyah pays tribute by combining two alphabets, "sin" and "ha," onto the prayer outfit
border in the shape of circular embroidery. It is available in two popular colours: mint
green and dusty pink.

Page 4 of 24
ii. Cost elements to produce the product

Material Costs
The cost of materials needed to create a product or perform a service is referred to as
material cost. All indirect materials, such as cleaning supplies used in the
manufacturing process, are excluded from the material cost. The cost of materials
accounts for a significant amount of the overall cost of the product. Every product is
made of one or more materials. As a result, precise material cost estimation, whether
direct or indirect, is critical. Examples of material costs in the manufacture of telekung
include poplin fabric, lycra fabric, high-quality elastic band, and many more.

Labour Costs

Labour expenses, as well as direct labour expenses It is a sum of money or finance

that can be explicitly and consistently linked to the production of a single product. It
is the total of all wages given to employees. Wages for tailors are an example of direct
labour for telekung since they are directly tied to the production of the product.

Overhead Costs

Overhead refers to continuing company costs that are not directly related to the
creation of a product or service. It is necessary not just for budgeting but also for
assessing how much a firm must charge for its products or services to earn a profit.
Overhead is defined as any expenditure required to support the business that is not
directly tied to a specific product or service. Overhead costs are an unavoidable part
of running a business. You require them to conduct your business. You can never
eliminate them, but you can limit their impact. Learn about the many forms of
overhead costs and how to determine how much you have. Overhead costs are also
incurred in the fabrication of telekung. For example, for indirect labour, a cashier
supervisor and manager assist with business management.

Page 5 of 24
iii. Classify the cost element into:

Item Nature of cost Behaviour of Function of cost

cost
Poplin fabric Direct Cost Variable cost Production cost
Lycra fabric Direct Cost Variable cost Production cost
High-quality elastic Direct Cost Variable cost Production cost
band
Zip Indirect Cost Variable cost Production cost
Waist band Indirect Cost Variable Cost Production cost
Lace Indirect Cost Variable cost Production cost
Threads Indirect Cost Variable cost Production cost
Wages of tailors Direct Cost Variable cost Production cost
Wage of supervisor Indirect Cost Fixed cost Production cost
Manager’s salary Indirect Cost Fixed cost Administration
cost
Hire special Direct Cost Fixed cost Production cost
embroidery machine
Utility bill (50% for Indirect Cost Mixed cost Production cost
production)
Utility bill (30% for Indirect Cost Mixed cost Administration
office administration) cost
Utility bill (20% for Indirect Cost Mixed cost Selling cost
shop)
Rental of factory Indirect Cost Fixed cost Production cost
(50%)
Rental of office Indirect Cost Fixed cost Administration
administration (30%) cost
Rental of shop (20%) Indirect Cost Fixed cost Selling cost
Delivery and Indirect Cost Variable cost Distribution cost
transportation
Advertising Indirect Cost Fixed cost Selling cost
Salesman salary Indirect Cost Variable Cost Selling Cost
commission

Page 6 of 24
iv. Picture of the material

Page 7 of 24
 v. The source document / evidence of the cost incurred

RECEIPT ORIGINAL
Ref No: RR0315
Jakel Trading Sdn Bhd
Jakel Mall, Lot 159, Jakel Square Off, Jalan
Date: 5 August 2020
Munshi Abdullah, Kuala Lumpur, 50100
Kuala Lumpur

To:
Atheesya Apparel Sdn Bhd
No 19,
Jalan Pahang, Pekeliling,
53000 Kuala Lumpur, Kuala Lumpur

Quantity Price per Amount

No Details
(metre) unit (RM) (RM)
1. Poplin Fabric 4,000 15 60,000
2. Lycra Fabric 200 10 2,000
3. High-quality elastic band 400 1 400
4. Waist band 800 5 4,000
5. Lace 2,500 15 37,500
Total 103,900
Ringgit: One hundred three thousand and nine hundred

Cash / Cheque No: AN00926

Atheesya Apparel Jakeal Trading

........................................ ........................................
Receiver Manager

Page 8 of 24
 RECEIPT ORIGINAL
Ref No: RR0215
Kim Lai Sdn Bhd
G37, Ground Floor, Pertama Shopping
Date: 8 August 2020
Complex, Jalan Tuanku Abdul Rahman.
50100 Kuala Lumpur.

To:
Atheesya Apparel Sdn Bhd
No 19,
Jalan Pahang, Pekeliling,
53000 Kuala Lumpur, Kuala Lumpur

Quantity Price per Amount

No Details
(pcs) unit (RM) (RM)
1. Zip 2,000 1 2,000
2. Threads – 500 metres 9 2 18
Total 2,018
Ringgit: One thousand and eighteen

Cash / Cheque No: AN00808

Atheesya Apparel Jakeal Trading

........................................ ........................................
Receiver Manager

Page 9 of 24
Page 10 of 24
Page 11 of 24
 EQUIPMENT SALES, RENTAL, PARTS AND SERVICE INVOICE
LOT 11 & 13, JALAN 51/201, OFF JALAN TANDANG
SEKSYEN 51, 46050 PETALING JAYA, SELANGOR DATE: 1 AUGUST 2020
03-7788 1111 INVOICE: INV 0021
CUSTOMER: 21

BILL TO NOTES

NAME: ATHEESYA APPAREL SDN BHD

ADDRESS: G37, GROUND FLOOR, PERTAMA SHOPPING
COMPLEX, JALAN TUANKU ABDUL RAHMAN, 50100 KUALA
LUMPUR.

EMAIL: [email protected]
PHONE: 013-2580486

DESCRIPTION QUANTITY UNIT PRICE AMOUNT

HIRE SPECIAL EMBROIDERY MACHINE 1.00 4,500.00 4,500.00

TOTAL 4,500.00

PAID 4,500.00

TOTAL DUE -

THANK YOU FOR YOUR BUSINESS!

Page 12 of 24
SYABAS & TENAGA NASIONAL BERHAD UTILITIES BILL

ATHEESYA APPAREL SDN BHD

G37, GROUND FLOOR,

PERTAMA SHOPPING COMPLEX,
JALAN TUANKU ABDUL RAHMAN,
50100 KUALA LUMPUR.

SUM PAYABLE RM5,000 BILL DATE

- PRODUCTION 3 AUGUST 2020

EXTRA PAYMENT: RM0.00

ELECTRICITY SUPPLY AMOUNT: RM3,500
WATER SUPPLY AMOUNT: RM1,500.00
AMOUNT PAID ON 23 AUGUST 2020

SYABAS & TENAGA NASIONAL BERHAD UTILITIES BILL

ATHEESYA APPAREL SDN BHD

G37, GROUND FLOOR,

PERTAMA SHOPPING COMPLEX,
JALAN TUANKU ABDUL RAHMAN,
50100 KUALA LUMPUR.

SUM PAYABLE RM3,000 BILL DATE

- OFFICE ADMINISTRATION 3 AUGUST 2020

EXTRA PAYMENT: RM0.00

ELECTRICITY SUPPLY AMOUNT: RM2,500
WATER SUPPLY AMOUNT: RM500.00
AMOUNT PAID ON 23 AUGUST 2020

Page 13 of 24
SYABAS & TENAGA NASIONAL BERHAD UTILITIES BILL

ATHEESYA APPAREL SDN BHD

G37, GROUND FLOOR,

PERTAMA SHOPPING COMPLEX,
JALAN TUANKU ABDUL RAHMAN,
50100 KUALA LUMPUR.

SUM PAYABLE RM2,000 BILL DATE

- SHOP 3 AUGUST 2020

EXTRA PAYMENT: RM0.00

ELECTRICITY SUPPLY AMOUNT: RM1,500
WATER SUPPLY AMOUNT: RM500.00
AMOUNT PAID ON 23 AUGUST 2020

Page 14 of 24
 WAREHOUSE AND FACTORY RENTAL INVOICE
NO. 62-9, JALAN BATU NILAM 4,
41200, KLANG, SELANGOR DATE: 1 AUGUST 2020
012-979 7993 INVOICE: INV 00101
CUSTOMER: 101

BILL TO NOTES

NAME: ATHEESYA APPAREL SDN BHD

ADDRESS: G37, GROUND FLOOR, PERTAMA SHOPPING
COMPLEX, JALAN TUANKU ABDUL RAHMAN, 50100 KUALA
LUMPUR.

EMAIL: [email protected]
PHONE: 013-2580486

DESCRIPTION QUANTITY UNIT PRICE AMOUNT

RENTAL OF FACTORY 1.00 9,000.00 9,000.00

RENTAL OF OFFICE ADMINISTRATION 1.00 5,400.00 5,400.00

TOTAL 13,400.00

PAID 13,400.00

TOTAL DUE -

THANK YOU FOR YOUR BUSINESS!

Page 15 of 24
Page 16 of 24
 SHOP FOR RENT INVOICE
UNIT E-11-2&3, MENARA SUEZCAP, KL GATEWAY,
NO. 2, JALAN KERINCHI, GERBANG KERINCHI, DATE: 1 AUGUST 2020
59200 KUALA LUMPUR INVOICE: INV 00101
03-7932 7555 CUSTOMER: 101

BILL TO NOTES

NAME: ATHEESYA APPAREL SDN BHD

ADDRESS: G37, GROUND FLOOR, PERTAMA SHOPPING
COMPLEX, JALAN TUANKU ABDUL RAHMAN, 50100 KUALA
LUMPUR.

EMAIL: [email protected]
PHONE: 013-2580486

DESCRIPTION QUANTITY UNIT PRICE AMOUNT

RENTAL OF SHOP 1.00 3,600.00 3,600.00

TOTAL 3,600.00

PAID 3,600.00

TOTAL DUE -

THANK YOU FOR YOUR BUSINESS!

Page 17 of 24
BRAND 360 DEGREE SDN BHD
1ST FLOOR, NO. 15, JALAN TEMBAGA SD 5/2,
BANDAR SRI DAMANSARA, 52200 KUALA LUMPUR.
03-6272 3299
[email protected]

ADVERTISING INVOICE

BILL TO ATHEESYA APPAREL SDN BHD INVOICE NO. 2001321

G37, GROUND FLOOR, DATE 1/8/2020
PERTAMA SHOPPING COMPLEX,
JALAN TUANKU ABDUL RAHMAN,
50100 KUALA LUMPUR.

DESCRIPTION QUANTITY UNIT PRICE AMOUNT

NEFERTARI AISYAH - TELEKUNG 1 RM1,500 RM1,500

TOTAL RM1,500

Page 18 of 24
 DELIVERY & TRANSPORTATION RECEIPT
BILL TO:
DATE: 23 AUGUST 2020 ATHEESYA APPAREL SDN BHD

G37, GROUND FLOOR,

RECEIPT NO: RN 0159
PERTAMA SHOPPING COMPLEX,
SERVICE PERSON: MR. CHONG
JALAN TUANKU ABDUL RAHMAN,
50100 KUALA LUMPUR.
[email protected]

013-2580486

MATERIAL QUANTITY UNIT PRICE AMOUNT

DELIVERY PARCEL OF TELEKUNG 100 13.00 1,300.00

TOTAL 1,300.00

THANK YOU FOR YOUR BUSINESS WITH US!

Page 19 of 24
b. Cost statement
i. Definition of cost statement

A cost statement, also known as a cost sheet, is a breakdown of all expenditures incurred,
including direct and indirect charges. While the phrase may be used to calculate the cost
of everything from university education to a development project, it is most typically
employed for commodities. Poplin fabric, for example, will be the direct material section
for telekung. The required labour to complete the product is referred to as direct labour.
Overhead comprises indirect costs involved with the product's execution, such as utility
expenses. There is also indirect labour, which is labour that supports the manufacturing
process but is not directly involved, such as supervisor wages.

Page 20 of 24
ii. Objectives of cost statement

Every product has its own business. Looking into the daily operations of production, the
business needs to allocate its budget. In other words, they need to know how well the
budget is being used to make their product. The cost statement provides details about the
various components of the total cost.

1. Determining cost: The cost sheet's primary goal is to determine an accurate

product cost. It calculates the total cost as well as the cost per unit of a product.
2. Determining the selling price: To determine the selling price of a product, you
must first create a cost sheet that shows the details of its manufacturing costs.
3. Cost comparison: It allows management to compare a product's current cost per
unit to a previous cost per unit for the same product. If costs have escalated,
comparing them allows management to take corrective action.
4. Cost control: A cost sheet is an important document for a manufacturing
company because it aids in cost control. An estimated cost sheet can help you
keep track of labour, material, and overhead expenses at each stage of the
manufacturing process
5. Decision-making: The cost sheet is used to make some of the most important
decisions made by management. Managers use the cost sheet whenever a
company wants to manufacture or purchase a component or quote pricing for its
goods in a tender.

Page 21 of 24
iii. Prepare a cost statement for your product
Atheesya Apparel Sdn Bhd
Cost Statement for the month of August 2020

RM RM
Direct Materials:
Poplin fabric 60 000
Lycra fabric 2 000
High-quality elastic band 400 62 400
Direct Labour:
Wages of tailors (5 x RM2 000) 10 000
Direct Expenses:
Hire special embroidery machine 4 500

PRIME COST 76 900

Production Overhead
Indirect Materials:
Zip 2 000
Waist band 4 000
Lace 37 500
Threads 18 43 518
Indirect Labour:
Wage of supervisor 3 500
Indirect Expenses:
Utility bill (50% x RM10 000) 5 000
Rental of factory (50% x RM18 000) 9 000 14 000

PRODUCTION COST 137 918

Non- Production Overhead

Administration Cost:
Utility bill (30% x RM10 000) 3 000
Rental of office administration 5 400
(30% x RM18 000)
Manager’s salary 2 500 10 900
Selling & Distribution Cost:
Utility bill (20 % x RM10 000) 2 000
Rental of shop (20% x RM18 000) 3 600
Advertising 1 500
Salesman salary commission (3 x RM500) 1 500
Delivery and transportation 1 300 9 900

TOTAL COST 158 718

Cost per unit: RM158,718 / 2,000 set = RM79.36

Page 22 of 24
 CONCLUSION

In conclusion, Nefertari Aisyah is a product manufactured by Atheesya Apparel Sdn Bhd. It

can provide comfort to the wearer. It is also quite practical because it features a pocket that
may help the wearer with their affairs. Nefertari Aisyah by Atheesya Apparel is a must-have
telekung for those who want a simple design with a contemporary touch of calligraphic art
embroidery.

The cost statement allows us to assess the costs associated with producing the product,
such as direct materials. Finally, the cost statement provides additional precise information on
the product.

Page 23 of 24
 REFERENCES

Bossart, M. (2017, November 16). What Are Overhead Costs? How Do You Calculate Them?
Retrieved from Patriot Software website:
https://www.patriotsoftware.com/blog/accounting/understanding-overhead-
expenses/amp/
Bragg, S. (2021, April 9). Material cost definition. Retrieved June 1, 2021, from
AccountingTools website:
https://www.accountingtools.com/articles/2017/5/9/material-
cost#:~:text=Material%20cost%20is%20the%20cost,used%20in%20the%20productio
n%20process.
Krishnan, V. (2019, September 2). Definition example, format of cost sheet - Zoho Books.
Retrieved from Essential Business Guides website:
https://www.zoho.com/books/guides/cost-
sheet.html#:~:text=Determining%20cost%3A%20The%20main%20objective,per%20
unit%20of%20a%20product.&text=Cost%20comparison%3A%20It%20helps%20the,
cost%20for%20the%20same%20product.
MAF151 Report (finalised). (2013). Retrieved from StuDocu website:
https://www.studocu.com/my/document/universiti-teknologi-
mara/accounting/mandatory-assignments/maf151-report-finalised/11031681/view
Rasheed, N. (2018). How to Prepare a Cost Statement. Retrieved from Career Trend website:
https://careertrend.com/how-7456137-prepare-cost-statement.html
Tuovila, A. (2021). Overhead. Retrieved from Investopedia website:
https://www.investopedia.com/terms/o/overhead.asp#:~:text=What%20Is%20Overhe
ad%3F,services%20to%20make%20a%20profit.

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