Cost Accounting Assignment | Homework Help Websites

1- Prepare the journal entries for the following: (4 Points)

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a. When raw materials are received, Give an example 

b. When raw materials are sent to the factory floor, Give an example

c. When a job is completed, what happen to the cost, Give an example

d. Overhead expenses ( salary) paid by cheque $ 5000 

e. Utilities (Indirect expenses) paid in cash $ 10000 

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.

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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%

a. What is the breakeven point for next year?

b. What is next year’s projected after-tax income?

c. 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.

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