Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
College of Administrative and Financial Sciences
Assignment 3
Deadline: 19.07.2021@ 23:59
Course Name: Cost accounting Students Name:
Course Code: ACCT 301 Students ID Number:
Semester: summer term CRN:
Academic Year:1442 H
For Instructors Use only
Instructors Name: Wadha Alrashidi
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 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. Provide numerical examples of a Direct Material Budget for the second quarter (April to June) by considering a manufacturing company operating in Saudi Arabia as a sample study. (2marks)
Answer:-
Almarai, makes a juice that sells for SAR 68/unit. It expects to produce 5,000 units in April and 6,000 units in May and 7,000 unit in June. Almarai prefers to end each period with a direct materials inventory equal to 30% of the direct materials required for the next periods production.
Almarais product uses 0.2 pounds of direct material per unit, at a cost of SAR 5/lb. There were 500 lbs. of direct material on hand on April 1. Assume that budgeted production for July is 8,000 units.
The direct materials purchases and usage budget for the second quarter (April to June)
Notes:-
Beginning DM inventory of the month is desired ending DM inventory of last period.
Desired ending DM inventory of June = Required production in units of July * 0.2 * 30% = 8,000 * 0.2 * 30% = 480
Usage budget = Total DM required, in pounds * Budgeted DM cost per pound
2. XYZ Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine hours in each department. (2marks)
Required:
a) Give a numerical example for the four departments, given the table below, (the numerical information should be appropriate as per the table given as a reference.
Answer:-
b) Then based on your given information, use The Direct method to allocate support department costs.
Allocate cost:
Answer:-
Determining the percentage usage based on Number of employees:-
Hot Rolled Hollow Steel Department: 30 / 40 (30 + 10) = 75% of Human Resource department costs
Cold Rolled Hollow Steel Department: 10 / 40 (30 + 10) = 25% of Human Resource department costs
Determining the percentage usage based on Number of machine hours:-
Hot Rolled Hollow Steel Department: 100 / 500 (100 + 400) = 20% of Information Technology department costs
Cold Rolled Hollow Steel Department: 400 / 500 (100 + 400) = 80% of Information Technology department costs
Determining the allocated costs of Human Resource department to operating departments:-
Hot Rolled Hollow Steel Department: 310,000 * 75% = 232,500 of Human Resource department costs
Cold Rolled Hollow Steel Department: 310,000 * 75% = 77,500 of Human Resource department costs
Determining the allocated costs of Information Technology department to operating departments:-
Hot Rolled Hollow Steel Department: 169,000 * 20% = 33,800 of Information Technology department costs
Cold Rolled Hollow Steel Department: 169,000 * 80% = 135,200 of Information Technology department costs
Determining the total costs of operating departments after adding allocated costs from Support Departments:-
Hot Rolled Hollow Steel Department: 1,504,000 + 232,500 + 33,800 = 1,770,300
Cold Rolled Hollow Steel Department: 680,000 + 77,500 + 135,200 = 892,700
3. For what types of products is the physical output method appropriate? Give suitable and real example that should support your answer. ch9 (1mark)
Answer:-
Physical output method can be used only when joint products are measured the same way (e.g. pounds or feet).
The joint costs per batch of mud are as follows:
Assume that at the split-off point, there are the following quantities of products:
Using the physical units method, the total joint costs of 233,840 are allocated using the pounds of products at the split-off point.
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RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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College of Administrative and Financial Sciences