Cost Accounting Worksheet

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College of Administration and Finance Sciences Assignment (2) Deadline: Saturday 09/04/2022 @ 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. College of Administration and Finance Sciences Assignment Question(s): (Marks 10) Q1. Explain how job costing is used in service sectors and manufacturing sectors? Provide examples by citing one job costing example of the service sector and one example of the manufacturing sector of a Saudi company to support your answers. (CH 5, 2 Marks) Answer: Q2. Axel Ltd. uses a process costing system for its sole processing department. There were 24,000 units in beginning WIP inventory for March and 216,000 units were started in March. The beginning WIP units were 75% complete and the 19,500 units in ending WIP were 60% complete. All materials are added at the start of processing. (CH 6, 3 Marks) Required: a) Compute the no. of units started & completed. b) Compute the EUP for DM and CC using FIFO and WA methods. c) Calculate total manufacturing cost/EUP under both methods, if the following details are available: FIFO WA Direct Material Cost SAR 700,000 SAR 910,000 Conversion Cost SAR 920,000 SAR 1,210,000 Answer: College of Administration and Finance Sciences Q 3 DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing plant every month: (CH 7, 2 Marks) Activity Material handling Supervision of direct labor Janitorial and cleaning Machining Total Costs (SAR) 315,000 180,000 250,000 350,000 Total costs Total number of units of Cost Driver 450,000 parts 110 employees 5,500 hours 8,500 machine hours 1,095,000 The above activities are used by the two departments as follows: Material handling Supervision of direct labor Time spent cleaning Number of machine hours Department A 220,000 parts 65 employees 2,500 hours 6,000 machine hours Department B 230,000 parts 45 employees 3,000 hours 2,500 machine hours a. How much of the material handling cost will be allocated to Department A? b. What is the ABC allocation rate for supervision of direct labor? Answer: Q 4. T&T produces product ‘X’ as a part of its main product. Each year, the company produces 75,000 units of product ‘X’. The costs of production are mentioned below. An outside supplier has offered to deliver 75,000 units of product ‘X’ annually at a cost of $7.35 per unit. A fixed production cost of $ 120,000 is unavoidable for product ‘X’. Should T&T Co. make or buy product ‘X’? College of Administration and Finance Sciences (CH 4, 2 Marks) The production costs per unit for manufacturing a unit of product B are: Production Cost Amount ($) Direct Materials 2.55 Direct Labor 1.95 Variable Manufacturing Overhead 1.20 Answers: Q5. “ABC is a costing method that allocates overhead and indirect costs to related products and services.” Comment on this statement and examine how ABC is used in the manufacturing sector with a suitable example. Answer: (CH 7, 1 Mark)
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College of Administration and Finance Sciences

Assignment (2)
Deadline: Saturday 09/04/2022 @ 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.

College of Administration and Finance Sciences

Assignment Question(s):

(Marks 10)

Q1. Explain how job costing is used in service sectors and manufacturing sectors? Provide
examples by citing one job costing example of the service sector and one example of the
manufacturing sector of a Saudi company to support your answers.

(CH 5, 2 Marks)

Answer:
Job costs are intricately related to the service and manufacturing sectors. One of the direct contrasts
between the service and production industries is how materials are used. The service sector frequently
consume minor, if not no, materials than the industrial sector, which relies heavily on resources to
produce commodities. As a result, their account names are slig...


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