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ASSIGNMENT COVER SHEET

Student ID: 1905504

Student Name: Patrick Chibabula

Course Code: ACC203

Course Title: Cost Accounting

Instructor Name: Mr. Steven Sikobela

Essay/Assignment Title: Assignment 1

Due Date: 5th March, 2020.

Declaration:
I understand that by completing this form I am bound by the following:
To the best of my knowledge and belief no part of this assignment for the above subject has been copied from
any other student’s work or from any other source except where due acknowledgement is made in the text, or
has been written for me by another person except where such collaboration has been authorized by the lecturer
concerned.

SIGNATURE P. Chibabula

Instructor’s Comments:

GRADE [ ]
COST ACCOUNTING ASSIGNMENT 1 2

Accounting is a systematic process of identifying, recording, measuring, classifying, verifying,

summarizing, interpreting and communicating financial information in order to permit informed

judgements and decisions by the users of the information [CITATION COL08 \l 1033 ]. Feather more,

accounting is divided into various branches and one of the branches of accounting is

management accounting and under management accounting there is cost accounting which will

then form the base of discussion for this academic paper, the writer shall start by defining cost

accounting and the objectives of cost accounting, discuss the essential features of a good cost

accounting system, define a cost driver and conclude by preparing a stores ledger account pricing

at last in first out and first in last out respectively.

Cost Accounting Definition

In relation to the information sequence above, cost accounting can be defined as an art

and science of accounting under management accounting which informs, examines, and analyses

the cost spent by the organization on any process, service, product or any cost ascertained in the

organization through establishment of budgets, standard costs and actual costs of processes,

services or products respectively; and also analyses the variances, profitability and social use of

organizational funds[ CITATION aca20 \l 1033 ]. Developing from that profound thought, there are

three broad categories that outlines the objectives of cost accounting which are; cost

ascertainment, infleunce decision making, and internal control

Objectives of Cost Accounting

Referring to the information above, cost accounting is divided into three broad categories

for which cost information is required that is cost for stock valuation among others
COST ACCOUNTING ASSIGNMENT 1 2

.
 COST ACCOUNTING ASSIGNMENT 1 2

XY COMPANY LTD

  STORES LEDGER ACCOUNT PRICED AT LAST IN FIRST OUT FROM 1/04/2019 - 10/04/2019

  Receipts Issues Stock Balance

Cost Per Cost Per Cost Per
Date Quantity Unit price Quantity Unit Price Quantity Unit Price
01/04/201
9             200 10 2000
05/04/201
9 250 8 2000   250 8 2000
08/04/201
9 150 8.5 1275       150 8.5 1275
10/04/201
9       100 8.5 850 200 10 2000
        250 8 2000
              50 8.5 425
10/04/201 Closing
9 Balance           500   4425
COST ACCOUNTING ASSIGNMENT 1 2

XY COMPANY LTD

STORES LEDGER ACCOUNT PRICE AT FIRST IN FIRST OUT FROM 11/04/2019 – 20/04/2019

  Receipts Issues Stock Balance

Cost Per Cost Per Cost Per
Date Quantity Unit Price Quantity Unit Price Quantity Unit Price

11/04/201
9             500 8.85 4425
15/04/20
19 50 10 500   50 10 500

20/04/201
9       10 8.85 88.5 490 8.85 4336.5
        50 10 500
21/04/20
19 60 9 540       490 8.85 4336.5
        50 10 500
              60 9 540

22/04/201
9       400 8.85 3540 90 8.85 796.5
        50 10 500
              60 9 540
22/04/20 Closing
19 Balance           200   1836.5