Overview
- 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.
Assignment Question(s): (Marks 15)
Q1. The following information was extracted from records of ALFAHD Corporation for 2022 (Amounts In Saudi Riyal)
Advertising Costs | SR12,470 |
Administrative Salaries | 28,700 |
Delivery Vehicle Depreciation | 1,000 |
Factory Repair and Maintenance | 910 |
Indirect Labor | 11,700 |
Indirect Materials | 9,360 |
Manufacturing Equipment Depreciation | 2,080 |
Office Rent | 42,300 |
President's Salary | 60,000 |
Sales Revenue | 350,000 |
Sales Salary | 38,000 |
Direct material | 75,000 |
Direct labor | 50,000 |
Required: calculate both period costs and product costs and prepare traditional income statement assuming all goods were sold. (Marks 4)
Answer:
Q2. Najd Corporation manufactures a variety of products. In the past, Najd has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Najd has decided to switch to an activity-based costing system for manufacturing overhead costs using three activity cost pools. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Information (on a per unit basis) related to three popular products at Najad are as follows: Required: Under the activity-based costing system, calculate the selling price of one unit for the model 19 & Model 36? (Marks 5)
Answer:
Q3. The activities performed in a processing department are uniform in all units produced. Production cost flows in a sequence from one department to another.
Explain Process Cost Flows from The Flow of Raw Materials to Finished Goods to COGS (in T-account form) with an appropriate example. (Marks 3)
Answer:
Q4. Assume that the contribution margin ratio is 25% for Grain Company and the break-even point in sales is $200,000. To obtain a target net operating income of $60,000. Calculate sales to attain a target profit. (Marks 3)
Answer: