Cost Accounting Assignment | Homework Help Websites

Assignment 2 Cost accounting

Last Date for Submission 16^th February 2019

You are required to work in this assignment individually

Instructions:

• Students must include these details (Name, Student ID, CRN, Date of submission)
• Do NOT  remove the questions in the answer papers. But write your answers below each question.
• Answer the ALL
• Assignments should be submitted in MS Word format
• Font should be Times New Roman with 14 points.
• You are required to work in this assignment individually.
• You should submit the assignment via the Blackboard.
• Students who submit assignments after deadline, will get ZERO.
• If you engaged in plagiarism, you will get ZERO marks in the assignment or course.

Question:

• Prepare the journal entries for the following: (4 Points)

1. When raw materials are received,Give an example
2. When raw materials are sent to the factory floor, Give an example
3. When a job is completed, what happen to the cost, Give an example
4. Overhead expenses ( salary) paid by cheque $ 5000
5. Utilities (Indirect expenses) paid in cash $ 10000
6. f) Salaries totaling $5,000 are accrued; 35% of these costs are direct labor, 40% are indirect labor and 25% are overhead expense. Prepare the journal entry.
7. g) Overhead costs are allocated to work in process using an allocation rate of 150% of direct labor costs and 300% of overhead expenses.

Prepare the journal entry.(Give different examples- examples should not be same)

2-Riyadh Electricity Company  manufactures chandeliers .  Following is information for next year’s operations, based on an estimated volume of 20,000 units: 4 marks

Expected revenues                                    $1,000,000

Unit costs:

Direct materials                                          $  6.25

Direct labor                                                  15.75

Variable overhead                                          5.50

Fixed manufacturing overhead                      2.50

Total                                                     $30.00

Other fixed costs:

Administration, marketing, etc.             $225,000

Income tax rate                                                    30%

1. What is the breakeven point for next year?
2. What is next year’s projected after-tax income?
3. Suppose the managers set a target after-tax income of $100,000. Estimate the number of units that must be sold.

3-Ahmed has budgeted next year’s sales at 8,000 units. (2 marks )

Compute Ahmed’s degree of operating leverage. If P = 1,000, V = 400, F = 850,000.