# ACCT 301 Saudi Electronic University Cost Accounting Worksheet

Description

Assignment Question(s): (Marks 10) Q1. State the reasons for allocating support department costs to the operating department. What are its various methods? Provide numerical examples of any two methods and discuss how these methods could be used to allocate these costs?(CH 8, 2.5 Marks) Answer: Q2. Z&C has two support departments, A1 and A2, and two operating departments, B1 and B2. Z&C has decided to use the direct method and allocate variable A1 dept. costs based on the number of transactions and fixed A1 dept. costs based on the number of employees. A2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers.The following information is provided:(CH 8, 2.5 Marks) Support Departments Operating Departments A1 A2 B1 B2 Total Department variable costs 5,000 6,000 38,000 21,000 Total department fixed costs 5,800 11,000 42,000 18,000 Number of transactions 15 18 80 45 Number of employees 5 7 15 12 Number of service requests 12 7 15 10 Number of computers 6 8 10 12 Allocate variable and fixed costs. Answer: Q3.JTC Corporation is a metal product manufacturer that produces three products: A, B, and C. The joint costs of the three products in 2018 were SAR 50,000. The total number of units for each product and the selling price per unit are given below: (CH 9, 2.5 Marks) Product Units Selling Price per unit A 20,000 SAR 6 B 12,500 SAR 5 C 7,500 SAR 4 Using the physical volume method and sales value at the split-off method, allocate the joint costs to each product. Answer: Q4. ABC Ltd. is preparing a budget for 2018. Following are the information related to budget preparation:(CH 10, 2.5 Marks) Budgeted selling price per unit = SAR 200 per unit Total fixed costs = SAR 250,000 Variable costs = SAR 65 per unit Required: Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units. Answer:

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College of Administration and Finance Sciences
Assignment (3)
Course Name: Cost Accounting
Student’s Name:
Course Code: ACCT 301
Student’s ID Number:
Semester: 2nd
CRN:
For Instructor’s Use only
Instructor’s Name:
/10
Level of Marks: High/Middle/Low
• 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. State the reasons for allocating support department costs to the operating department. What
are its various methods? Provide numerical examples of any two methods and discuss how these
methods could be used to allocate these costs?
(CH 8, 2.5 Marks)
Q2. Z&C has two support departments, A1 and A2, and two operating departments, B1 and B2.
Z&C has decided to use the direct method and allocate variable A1 dept. costs based on the
number of transactions and fixed A1 dept. costs based on the number of employees. A2 dept.
variable costs will be allocated based on the number of service requests and fixed costs will be
allocated based on the number of computers.
The following information is provided:
(CH 8, 2.5 Marks)
Support Departments
Operating Departments
A1
A2
B1
B2
Total Department variable costs
5,000
6,000
38,000
21,000
Total department fixed costs
5,800
11,000
42,000
18,000
Number of transactions
15
18
80
45
Number of employees
5
7
15
12
Number of service requests
12
7
15
10
Number of computers
6
8
10
12
Allocate variable and fixed costs.
College of Administration and Finance Sciences
Q3. JTC Corporation is a metal product manufacturer that produces three products: A, B, and
C. The joint costs of the three products in 2018 were SAR 50,000. The total number of units for
each product and the selling price per unit are given below:
Product
Units
Selling Price per unit
A
20,000
SAR 6
B
12,500
SAR 5
C
7,500
SAR 4
(CH 9, 2.5 Marks)
Using the physical volume method and sales value at the split-off method, allocate the joint costs to
each product.
Q4. ABC Ltd. is preparing a budget for 2018. Following are the information related to budget
preparation:
(CH 10, 2.5 Marks)
Budgeted selling price per unit
=
SAR 200 per unit
Total fixed costs
=
SAR 250,000
Variable costs
=
SAR 65 per unit
Required:
Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units.

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Cost

accounting

finance

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