Business Finance
ACCT 301 Saudi Electronic University Cost Accounting Questions

ACCT 301

Saudi electronic university

ACCT

Question Description

I’m working on a Accounting exercise and need support.

  • 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.

Unformatted Attachment Preview

College of Administrative and Financial Sciences Assignment 3 Deadline: 11/04/2020 @ 23:59 Course Name: Cost accounting Student’s Name: Course Code: ACCT 301 Student’s ID Number: Semester: 2 CRN: Academic Year: 1440/1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of Level of Marks: High/Middle/Low Instructions 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. Page 1 of 4 Q 1 The accountant for Kadhim Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Support Departments Maintenance Direct costs Square feet Cafeteria SAR50,000 SAR45,000 Number of employees Operating Departments Cutting SAR275,000 Packaging SAR300,000 15 10 150 250 1,500 2,000 3,500 4,000 a- If the direct method is used, calculate maintenance costs allocated to the cutting department? b- If the direct method is used, calculate the total cost (including allocations) for the packaging department? c- Assume you are working for the organization and are requested to allocate support department costs. Describe how you would choose the best method? ( 2 marks) Answer Q 2 Khaleel Compagny produces three products A, B and C. During the year the joint costs of processing the coffee were SAR270,000. Production and sales value information were as follows: Sales Value Product Units at Split-Off Separable Costs Selling Price A 300,000 SAR9 per unit SAR5.00 per unit SAR32 per unit B 200,000 SAR8 per unit SAR3.00 per unit SAR30 per unit C 400,000 SAR7 per unit SAR2.00 per unit SAR20 per unit Page 2 of 4 Chose one method to allocate joint costs and allocate the joint costs. (1 mark) Answer Q3 In a recent accounting period, Ismail Company experienced a SAR30,000 unfavorable variance for variable production costs. Explain the meaning of an unfavorable variance. Suggest two possible (1 mark) Answer Q4 How are budgets related to organizational strategies? (1 mark) Answer Page 3 of 4 Page 4 of 4 ...
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Final Answer

Attached.

College of Administrative and Financial Sciences

Assignment 3
Deadline: 11/04/2020 @ 23:59

Course Name: Cost accounting

Student’s Name:

Course Code: ACCT 301

Student’s ID Number:

Semester: 2

CRN:
Academic Year: 1440/1441 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of

Level of Marks: High/Middle/Low

Instructions

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.
Page 1 of 5

Q 1 The accountant for Kadhim Inc. is preparing the budgets for operating department
support service costs. Maintenance costs are allocated based on square feet, and
cafeteria costs are allocated based on number of employees. The following data have
been collected:
Support Departments
Maintenance
Direct costs

Cafeteria

SAR50,000 SAR45,000

Number of employees
Square feet

Operating Departments
Cutting
SAR275,000

Packaging
SAR300,000

15

10

150

250

1,500

2,000

3,500

4,000

a- If the direct method is used, calculate maintenance costs allocated to the cutting
department?
b- If the direct method is used, calculate the total cost (including allocations) for the
packaging department?
c- Assume you are working for the organization and are requested to allocate support
department costs. Describe how you would choose the best method? ( 2 marks)
Answer
a) statement showing allocation of maintenance department costs to the Cutting
department (using Direct Method)

Page 2 of 5

From

To
Maintanance
In SAR

Direct costs
Mainatanance Allocation

Total

Cafeteria Cutting
Packaging
In SAR
In SAR
In SAR
50,000.00 45,000.00
275,000.00
300,000.00
-50,000.00
23,333.33
26,666.67

-

45000.00

Mainatnance cost to be allocated to operartin Dept.
Allocation ba...

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