Accounting Question

College of Administration and Finance SciencesAssignment (1)
Deadline: 02/03/2024 @ 23:59
Course Name: Managerial Accounting Student’s Name:
Course Code: ACCT322
Student’s ID Number:
Semester: 2nd-23-24
CRN:
Academic Year: 1445 H
For Instructor’s Use only
Instructor’s Name: Dr. Ashfaque Ahmed
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.
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
Q.1 Compute and complete the following table as per the value given in the box. (2 Marks)
Output
Total Fixed Cost
Total Variable Cost
Total Cost
200
300
400
150,000
20,000
500
600
Answer:
Output
Total Fixed Cost
Total Variable Cost
Total Cost
200
20,000
100,000
120,000
300
20,000
150,000
170,000
400
20,000
200,000
220,000
500
20,000
250,000
270,000
600
20,000
300,000
320,000
Q2. Briefly Explain with example in your words (2 marks)
1. Job Costing
2. ABC Costing
Answer:
Students’ answer may be different depending upon Explanation. (DON’T COPY THE
ANSWER FROM OTHER STUDENT)
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Q.3- Global MNCs manufactures sports items. The material used in for one sports item cost
$ 45. The Global MNCs establish and rents a manufacturing factory for a monthly rent of
$ 475.
(3 Marks)
You are required to.
Prepare a table showing the Total Fixed Cost, Total Variable cost, Total Cost and Average
Fixed Cost, Average Variable Cost, and Average Cost for three different levels of production.
(No. of units at three different levels can be chosen by you).
Every student should choose different level. Do not copy and paste the same unit/number.
Solution. This is just a model SOLUTION. Students’ answer may be different depending upon
their assumption.
Level
TFC
TVC
TC
AFC
AVC
AC
Q. 4 -The total cost of production for the last six Months for Noor Bicycles is as follows.
Use the high-low method find out.
1. Variable cost per unit,
2. Fixed cost
3. Total cost, if production in the July will be 5000 units.
(3 Marks)
Month
January
February
March
April
May
June
Answer: slides 1-26 to 1-28
Units
3,560
3,800
4,000
3,600
3,200
3,040
Total Cost
$242,400
$252,000
$260,000
$244,000
$228,000
$221,600
College of Administration and Finance Sciences
1- Variable cost per unit using the high-low method:
(260,000-221,600) / (4,000-3,040)
38,400 – 960 = 40 $
2- Total fixed cost = total cost – total variable cost
Total fixed cost = 260,000 – (40 * 4000)
Total fixed cost = 260,000 – 160,000 = 100,000 $
3- Total cost for July with 5,000 units.
Total cost = total fixed cost + (variable cost per unit * units)
Total cost = 100,000 + (40 * 5,000)
Total cost = 100,00 + 200,000 = 300,000 $
Q. 5 A few costs and measures of activity are listed below. (5 marks)
Required:
Fill the correct cost in the column mentioned below as per information which indicates whether
the cost is Direct / Indirect /Fixed or Variable with respect to the possible measure of activity
listed below.
Cost Description
Possible measure of
activity / cost object
Fixed or Variable cost /
Direct / or Indirect cost
Cost of direct material used to make tables
and chairs in the office
Units produced
Variable/direct
Cost of COVID vaccine produced in the KSA
Vaccine production
Variable/direct
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Cement/ steel /sand/ other material use to
build a house/office
Office or home
Variable/direct
Electricity cost for lulu hypermarket for
selling products or production /producer
Selling product to the
people
Fixed/indirect
Deprecation cost for lulu hypermarket on all
kinds of fixed assets or any constructions
A particular location or
hypermarket
Fixed/indirect
Buying a photocopier for the production unit
For the office use
Fixed/indirect
Paying any kind of incentive or commission
for salesperson in MNCs
Paying in SR or $
Variable/indirect
Paying salary to the driver at home for
working on the monthly basis
Working for whole family
Fixed/direct
Internet and water bills paid for the
warehouse on the accrual basis
Monthly accrual payment
Fixed/indirect
Driver’s salary paid for the finished goods
Transporting to the market Fixed/indirect
for the sale