Business Finance
ACCT 322 Saudi Electronic University Prepare Sales and Production Budgets Paper

ACCT 322

Saudi electronic university

ACCT

Question Description

I’m trying to study for my Accounting course and I need some help to understand this question.

Q1. ABC prepares budgets for the quarter ending sept.30. Sales in units: July 20,000, August 50,000, September.30, 000, Oct. 25,000. Selling price is SR 10 per unit. , inventory in June 31, is 4,000 units. Desired inventory is 20% of the next month sales. (2.5 marks)

Required: Prepare sales and production budgets.

Answer:

Q2. ABC Company has equipment and it considers whether to sell it directly at a price of SR 200,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 220,000.

Required: using the differential analysis which alternative do you recommend about the equipment. (2.5 marks)

Answer:

Q3.ABC Inc. has average operating assets of SR200, 000 and is required to earn a return of 15% on these assets. In the current period, the division earns net income of SR50, 000. (2.5 marks)

Required: compute the residual income.

Answer:

Q4. At ABC Inc., manufacturing overhead is applied to units of product based on direct labor-hours. The estimated direct labor hour next year is 50,000 hours; the variable manufacturing overhead rate is SR 20 per direct labor-hour. Fixed manufacturing overhead is SR 500,000 per year (2.5 marks)

Required: compute the single predetermined manufacturing overhead rate.

Answer:

Unformatted Attachment Preview

College of Administrative and Financial Sciences Assignment 3 Deadline: 11/4//2020@ 23:59 Course Name: Managerial Accounting Student’s Name: Course Code:ACCT 322 Student’s ID Number: Semester: 3 CRN: Academic Year: 1440/1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of 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 answered 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. 1 Assignment Question(s): (Marks10) Q1. ABC prepares budgets for the quarter ending sept.30. Sales in units: July 20,000, August 50,000, September.30, 000, Oct. 25,000. Selling price is SR 10 per unit. , inventory in June 31, is 4,000 units. Desired inventory is 20% of the next month sales. (2.5 marks) Required: Prepare sales and production budgets. Answer: 2 Q2. ABC Company has equipment and it considers whether to sell it directly at a price of SR 200,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 220,000. Required: using the differential analysis which alternative do you recommend about the equipment. (2.5 marks) Answer: 3 Q3.ABC Inc. has average operating assets of SR200, 000 and is required to earn a return of 15% on these assets. In the current period, the division earns net income of SR50, 000. (2.5 marks) Required: compute the residual income. Answer: 4 Q4. At ABC Inc., manufacturing overhead is applied to units of product based on direct labor-hours. The estimated direct labor hour next year is 50,000 hours; the variable manufacturing overhead rate is SR 20 per direct labor-hour. Fixed manufacturing overhead is SR 500,000 per year (2.5 marks) Required: compute the single predetermined manufacturing overhead rate. Answer: 5 ...
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Final Answer

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College of Administrative and Financial Sciences

Assignment 3
Deadline: 11/4//2020@ 23:59
Course Name: Managerial Accounting

Student’s Name:

Course Code:ACCT 322

Student’s ID Number:

Semester: 3

CRN:
Academic Year: 1440/1441 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
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 t...

FrankRose23 (2492)
UT Austin

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