Description
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:
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
Total Costs (SAR)
Total number ofunits of Cost Driver
Material handling
315,000
450,000 parts
Supervision of direct labor
180,000
110 employees
Janitorial and cleaning
250,000
5,500 hours
Machining
350,000
8,500 machine hours
Total costs
1,095,000
The above activities are used by the two departments as follows:
Department A
Department B
Material handling
220,000 parts
230,000 parts
Supervision of direct labor
65employees
45 employees
Time spent cleaning
2,500 hours
3,000 hours
Number of machine hours
6,000 machine 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’?
(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.
1 attachmentsSlide 1 of 1attachment_1attachment_1
Explanation & Answer:
5 Questions 500 Words Each
Tags:
COSTING METHOD
products and services
Variable Manufacturing Overhead
User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.
Reviews, comments, and love from our customers and community: