Cost Accounting

College of Administration and Finance SciencesAssignment (2)
Deadline: Saturday 27/07/2024 @ 23:59
Course Name: Cost Accounting
Student’s Name:
Course Code: ACCT 301
Student’s ID Number:
Semester: Summer
CRN:
Academic Year: 1445 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/15
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.
Restricted – ‫مقيد‬
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
Q1. Give example of company using ABC costing and explain the process used in this company to
assign costs in an ABC system?
(3 marks)
Answer:
Q2. Kadhim Co. manufactures product B which is a part of its main product. Kadhim Co makes 50,000
units of product B per year. The production costs are detailed below. An outside supplier has offered
to supply 50,000 units of product B per year at SAR 2.45 each. Should Kadhim Co make or buy the
product B?
(3 marks)
The production cost per unit for manufacturing a unit of product B are:
Direct Materials
0.85
Direct Labor
0.65
Variable Manufacturing Overhead
0.40
Answer:
Q 3. LMN Compagny produces three products K, L and M. During the year, the joint costs of
processing the three products were SAR 480,000.
Production and sales value information were as follows:
Sales Value
Product
Units
at Split-Off
Separable Costs
Selling Price
K
500,000
13 per unit
6.00 per unit
40 per unit
L
300,000
12 per unit
4.00 per unit
37 per unit
M
200,000
8 per unit
3.00 per unit
28 per unit
Allocate the joint costs using the physical output method.
Restricted – ‫مقيد‬
(3 marks)
College of Administration and Finance Sciences
Answer:
Q4. A company uses a process costing system for its sole processing department. There were 4,000
units in beginning WIP inventory for June and 36,000 units were started in June. The beginning WIP
units were 60% complete and the 3,250 units in ending WIP were 40% complete. All materials are
added at the start of processing.
Required:
a) Compute the no. of units started & completed.
b) Compute the EUP for DM and CC using FIFO and WA methods.
Answer:
Restricted – ‫مقيد‬
(6 Marks)