College of Administration and Finance Sciences

Assignment (1)
Deadline: Saturday 10/01/2022 @ 23:59

Course Name: Cost Accounting

Student’s Name:

Course Code: ACCT 301

Student’s ID Number:

Semester: 2nd

CRN:

Academic Year: 1444 H

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: /15

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 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. What information is relevant for decision-making? Differentiate between relevant and irrelevant information for decision-making. Support your answer by explaining the information in the context of an organization.
(3 Marks)
Note: Your answer must include suitable examples of relevant and irrelevant information for decision-making. (Week 2, Chapter 1)
Answer:

Q2. A&D Ltd. is in the manufacturing of wooden products and makes several wooden items. The following values are related to a particular wooden item:

Particulars

Selling price per unit

SAR 1,100

Variable cost per unit

SAR 400

Total fixed costs

SAR 500,000

Estimated next year’s budgeted sales

1,200 units

You are required to calculate: (4 Marks)
a) BEP in units and BEP in sales SAR
b) Degree of operating leverage
c) Margin of safety in units
d) Margin of safety in SAR (Week 4, Chapter 3)
Answer:

Q3. The information below was derived from the 2018 records of HCS Company: (4 Marks)

Month

Units Produced

Total Cost (SAR)

May

4,350

44,200

June

4,700

44,700

July

5,000

45,000

August

5,400

45,400

September

5,650

47,500

October

5,900

57,150

November

3,450

40,000

December

4,100

40,600

Using the high-low method of analysis, calculate
i. Variable cost
ii. Fixed cost, and
iii. Determine a cost function. (Week 3, Chapter 2)
Answer:

Q4. The following transactions are related to a particular job. You are required to make the necessary journal entries. (4 Marks)
a) The materials storeroom receives a shipment of direct and indirect materials that cost SAR 50,000.
b) Materials are sent to the stamping and assembly areas. The cost of the direct materials is SAR 5,600 and the cost of the indirect materials is SAR 3,200.
c) Wages totaling SAR 7,000 are accrued; 60% of these costs are direct labor and 40% are indirect labor.
d) Overhead costs are allocated to work in process using an allocation rate of 250% of direct labor costs.
e) Job no. 25, with a total cost of SAR 8,500 is completed.
f) Job no. 25 is shipped to the customer, who is billed for SAR 15,000.
(Week 5, Chapter 5)

Answer:

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