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Accounting · Studypool

Cost Accounting

Overview

In August 2024, Ahmed Co. incurred total cost of SAR 29,000 and made 3,100 units. In November 2024, it produced 1,600 units with a total cost of  SAR 20,000.  (Mark1 x 5)

Requirement:

  • Find Per Unit Variable Cost

Find Total Variable Cost in the Month of August

Find Total Variable Cost in the Month of November

  • Find Total Fixed Cost
  • Determined Cost Function
  • ABC Company Ltd. has provided the following information for the year ended December 31, 2023.(Mark 1 X 5)
  • SAR
  • Total Sales Revenue2,880,000

Total Variable Cost 1,080,000

  • Total Fixed Cost1,500,000

Units Produced and Sold 3,600

Determine the following from the above information:

Contribution Per Unit

Contribution Margin Ratio

Break Even Point in units

Break Even Point in Sales 

Margin of Safety in Sales

Suppose budgeted overhead was $ 120,000 fixed overhead plus variable overhead of $ 12/DL hour. Expected DL hours were 60,000, so that the estimated overhead rate was $ 14/DL hour. Actual DL hours totaled 50,000 for the year and actual overhead was $ 740,000. At the end of the year, Work in Progress, Finished Goods & Cost of Goods Sold had the account balances shown below.

Work in Progress

SAR150,000

Finished Goods


250,000

  •  

Cost of Goods Sold


1,600,000

  •    

2,000,000

  • Requirement:

Prepare Overhead Cost Control Account

Assuming Misallocated Overhead as material, determine the ratio of the three accounts to close overhead cost control account