Managerial Accounting

College of Administration and Finance SciencesAssignment (1)
Deadline: 13/7/2024 @ 23:59
Course Name: Managerial Accounting
Student’s Name:
Course Code: ACCT 322
Student’s ID Number:
Semester: summer term
CRN:
Academic Year: 1445-1446 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.
1
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College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
Q1. Assume yourself to be a cost manager of ARAMCO and you are in the task of
Cost Classifications. Explain how the following costs would help you as cost
manager to make decision. (2 Marks)
1. Product Vs Period Cost
2. Prime Vs Conversion Cost
3. Committed Vs Discretionary Cost
Answer:
Q2: A fresh graduate employed as an accountant of a manufacturing company and is
working on over applied and under applied overheads.
Explain how you would assist him/her in computing over applied and under applied
overheads. Give numerical examples (2 Marks)
Answer:
Q3.a. Latif Company has two products: A and B. The company uses activity-based
costing. The estimated total cost and expected activity for each of the company’s three
activity cost pools are as follows:
Required:
1. Compute POHR per activity (Round off to two decimal places)
2
Restricted – ‫مقيد‬
College of Administration and Finance Sciences
2. Calculate the overhead cost per unit, if the company produces 1,000 units of
product A and 500 units of product B. (5 MARKS)
Answer:
Q4. Explain Equivalent Units of Production and its computation using weighted
average method and FIFO method. (2 Marks)
Answer
Q5a. ‘Cost Structure and Profit Stability’ is one of the most import strategy of a
corporations. Explain how managers, maintain cost structure for stability in profit
during both good and bad years. (2 Marks)
Answer:
Q5b.The following is Allison Corporation’s contribution format income statement
for last month:
Account title
Amount in SR
Sales
850,000
Variable Cost
250,000
Contribution Margin
600,000
Fixed Expenses
450,000
Net operating Income
150,000
The company has no beginning or ending inventories. The company produced and
sold 15,000 units last month.
Required: (2 Marks)
i.
Compute Margin of Safety.
ii.
What is the company’s degree of operating leverage?
Answer:
3
Restricted – ‫مقيد‬
College of Administration and Finance Sciences
Assignment (2)
Deadline: 27/07/2024 @ 23:59
Course Name: Managerial Accounting
Student’s Name:
Course Code: ACCT 322
Student’s ID Number:
Semester: summer term
CRN:
Academic Year: 1445-46 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.
1
Restricted – ‫مقيد‬
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
Q1. Assume that you are preparing a Master Budget for a reputed corporation. Bring
out numerical examples on the complete master budget of the corporation.
Q2. XYZ Company is considering purchasing new equipment costing SAR 250,000.
The company’s management has estimated that the equipment will generate cash
flows as follows (SAR):
Yea
r
1
2
3
4
Net Cash Flow
90,000
75,000
85,000
75,000
PV @10%
0.9091
0.8264
0.7513
0.6830
The company’s required rate of return is 10%. Calculate the net present value and give
reasons on whether the project should be accepted or rejected.
Q3a. Assume a company manufactures cars and currently uses only 50% of its
manufacturing facility 20,000 cars). The company could utilize more of its facility by
producing its own tires. It currently purchases tires at SAR 30 per set of four. If the
company would incur SAR12 per set for direct materials, SAR10 for direct labor, and
SAR 6 for overhead (variable) to produce the tires.
Required: Compute why the company should, make or buy the tires, in any scenario
give your decision why?
2
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College of Administration and Finance Sciences
Q3b. The cost to produce one unit of the product is:
Material
SAR 13.00
Labor
8.00
Variable cost
7.00
Fixed expenses
18.00
Total fixed expenses: $ 500,000
The company has received a special order for 20,000 units for a price of SAR 36 per
unit from a foreign customer.
Required: Advice the manufacturer on whether the order should be accepted.
3
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