College of Administrative and Financial Sciences
Deadline: 11/4//2020@ 23:59
Course Name: Managerial Accounting
Course Code:ACCT 322
Student’s ID Number:
Academic Year: 1440/1441 H
For Instructor’s Use only
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
• 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.
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.
Required: Prepare sales and production budgets.
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
Required: using the differential analysis which alternative do you recommend about
the equipment. (2.5 marks)
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.
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.
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