College of Administration and Finance Sciences

Assignment (1)
Deadline: Saturday 29/04/2023 @ 23:59

Course Name: Cost Accounting Student’s Name:

Course Code: ACCT 301 Student’s ID Number:
Semester: 3rd CRN:
Academic Year: 1444 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.
 College of Administration and Finance Sciences

Assignment Question(s): (Marks 15)

Q1. Differentiate with suitable examples the relevant cash flows and irrelevant cash flows.
What relevant role do these cash flows provide in management decision-making? Provide a
suitable example in context to an organization to support your answer.
(3 Marks)
                      
Note: Your answer must include suitable examples of relevant and irrelevant cash flows for
management decision-making. (Week 2, Chapter
1)

Answer:

Q2. What are the various methods of estimating cost functions? Explain each method with
suitable numerical examples. (4
Marks)

Note: You are required to assume values for numerical examples of your own, and they should
not be copied from any sources. (Week 3,
Chapter 2)

Answer:

Q3. ALC ltd. manufactures a product ‘X’ for which the selling price per unit, variables cost
per unit, and fixed costs are as follows: (4
Marks)
 College of Administration and Finance Sciences

Selling price per unit SAR 750

Variable cost per unit SAR 225

Total Fixed Costs SAR 425,000

Answer the following questions using cost volume profit analysis:

a) Determine the break-even point in units.

b) Determine the break-even point in sales SAR.
c) What will be the pretax profit if the company sells 1,400 units of the product?
d) How many units the company will be required to sell to reach a target pretax profit of
SAR 200,000?
e) The margin of safety in units if the company’s estimated next year budgeted sales are
1,500 units. (Week 4, Chapter
3)

Answer:

Q4. KCC Ltd. uses a process costing system for its sole processing department. There were
35,000 units in the beginning WIP inventory for June and 325,000 units were started in June.
The beginning WIP units were 50% complete and the 30,000 units in the ending WIP were
40% complete. All materials are added at the start of processing. (4
Marks)

You are required to:

a) Compute the no. of units started & completed.

b) Compute the EUP for DM and CC using FIFO and WA methods.

c) Calculate total manufacturing cost/EUP under both methods with the following details:
 College of Administration and Finance Sciences

FIFO WA
Direct Material Cost SAR 850,000 SAR 1,000,000
Conversion Cost SAR 1,025,000 SAR 1,350,000
(Week 5, Chapter
6)

Answer: