Accounting H.W

Assignment (3)
Deadline: Saturday 30/04/2022 @ 23:59

Course Name: Cost Accounting Student’s Name:
Course Code: ACCT 301 Student’s ID Number:
Semester: 2nd CRN:
Academic Year: 1443 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10 Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.

Assignment Question(s): (Marks 10)
Q1. State the reasons for allocating support department costs to the operating department. What are its various methods? Provide numerical examples of any two methods and discuss how these methods could be used to allocate these costs? (CH 8, 2.5 Marks)
Answer:

Q2. Z&C has two support departments, A1 and A2, and two operating departments, B1 and B2. Z&C has decided to use the direct method and allocate variable A1 dept. costs based on the number of transactions and fixed A1 dept. costs based on the number of employees. A2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following information is provided: (CH 8, 2.5 Marks)

Support Departments Operating Departments
A1 A2 B1 B2
Total Department variable costs 5,000 6,000 38,000 21,000
Total department fixed costs 5,800 11,000 42,000 18,000
Number of transactions (VC) 15 18 80 45
Number of employees (FC) 5 7 15 12
Number of service requests (VC) 12 7 15 10
Number of computers (FC) 6 8 10 12

Allocate variable and fixed costs.
Answer:

Allocate variable cost :
A1 (125) (5,000) 3,200 1,800 0
A2 (25) (6,000) 3,600 2,400 0
Total variable cost 0 0 44,800 25,200 70,000

Allocate fixed cost :
A1 (27) (5,800) 3,222.22222 2,577.77778 0
A2 (22) (11,000) 5,000 6,000 0
Total Fixed cost 0 0 50,222.22222 26,577.7778 76,800

Total FC and VC 0 0 95,022.22222 51,777.7778 146,800

Q3. JTC Corporation is a metal product manufacturer that produces three products: A, B, and C. The joint costs of the three products in 2018 were SAR 50,000. The total number of units for each product and the selling price per unit are given below: (CH 9, 2.5 Marks)

Product Units Selling Price per unit
A 20,000 SAR 6
B 12,500 SAR 5
C 7,500 SAR 4

Using the physical volume method and sales value at the split-off method, allocate the joint costs to each product.
Answer:
Determine the total produced units = 20,000+ 12,500 + 7,500 = 40,000 units
Total joint costs of products = 50,000 SAR
The joint cost per unit = # Of units / total joint costs = 40,000units / 50,000 SAR = 0.8 SAR
• Physical Output Method
Products Allocation
Product A = 20,000 / 0.8 = 25,000
Product B = 12,500 / 0.8 = 15,625
Product C. = 7,500 / 0.8 = 9,375

• Sales value at the split-off method
1stSales value at split-off point for product A = 20,000 x SAR6 = SAR120,000
Sales value at split- off point for product B = 12,500 x SAR5 = SAR62,500
Sales value at split-off point for product C = 7,500 x SAR4 = SAR30,000
2nd Total Sales value at split-off point = SAR212,500
3rd The Joint Cost per unit =212,500 / 50,000 SAR = SAR4.25
Allocated joint costs by Split-off point method =Total Sales value at Split-off point / Split-off point Joint Cost per unit

Products Allocation
Product A =120,000 / 4.25 = 28,235.2941

Product B = 62,500 / 4.25 = 14,705.8824
Product C. = 30,000 / 4.25 = 7,058.82353

Q4. ABC Ltd. is preparing a budget for 2018. Following are the information related to budget preparation: (CH 10, 2.5 Marks)
Budgeted selling price per unit = SAR 200 per unit
Total fixed costs = SAR 250,000
Variable costs = SAR 65 per unit
Required:
Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units.
Answer:
• Sales in 2,000
Revenues = 200 * 2000 = 400,000
Variable cost = 65 * 2000 = 130,000
Contribution margin = Revenue – Variable = 400,000 – 130,000 = 270,000
Fixed cost = 250,000
Operating income = Contribution margin – Fixed = 270,000 – 250,000 = 20,000
• Sales in 2,500
Revenues = 200 * 2,500 = 500,000
Variable cost = 65 * 2,500 = 162,500
Contribution margin = Revenue – Variable = 500,000 – 162,500 = 337,500
Fixed cost = 250,000
Operating income = Contribution margin – Fixed = 337,500 – 250,000 = 87,500
• Sales in 3000
Revenues = 200 * 3,000 = 600,000
Variable cost = 65 * 3,000 = 195,000
Contribution margin = Revenue – Variable = 600,000 – 195,000 = 405,000
Fixed cost = 250,000
Operating income = Contribution margin – Fixed = 405,000 – 250,000 = 155,000
• Sales in 3500
Revenues = 200 * 3,500 = 700,000
Variable cost = 65 * 3,500 = 227,500
Contribution margin = Revenue – Variable = 700,000 – 227,500= 472,500
Fixed cost = 250,000
Operating income = Contribution margins – Fixed = 472,500 – 250,000 = 222,500

 

 

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!

Essays

Essay Writing Services

At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.

Admissions

Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!

Editing

Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.

Coursework

Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.

Coursework

College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!

Coursework

Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.

togel macau togel terbesar bocoran admin jarwo data macau