topic:- Cost accounting
* no hand writing
*the answer must be unique not copied "plagiarized "
Assignment Question(s):
Q1. Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam).
In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees.
Number of
Square FeetEmployees
Support Departments:
Maintenance1,00015
Personnel1,0008
Operating Departments:
Riadh5,00012
Jeddah6,00018
Dammam3,00010
If the restaurant uses the direct method and the costs of Riadh location, Jeddah location and Dammam location are $15,000, $12,000 and $10,000 respectively, calculate the total costs allocated to each restaurant location.
Q 2 The cost to produce one unit of the product is:
Material $ 12.00
Labor $ 9.00
Variable cost $ 6.00
Fixed expenses $ 18.00
Total fixed expenses: $ 1,440,000
The company’s normal capacity is 100,000 units. The figures given above are for 80,000 units.
The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer.
Advice the manufacturer on whether the order should be accepted.
Q 3 Taha Compagny produces three products: Product A, Product B, and Product C.
During the year the joint costs of processing the three products were $400,000. Production and sales value information were as follows:
Sales Value
ProductUnitsat Split-OffSeparable CostsSelling Price
A400,000 $20 per unit $ 20 per unit$40 per unit
B400,000 $18 per unit $ 15 per unit $28 per unit
C800,000$12 per unit $14 per unit $17 per unit
a.Allocate the joint costs using the physical output method.
b.Allocate the joint costs using the net realizable value method.
c. Allocate the joint costs using sales value at split-off point method.
Answers :
Q1 . Calculation of total cost (Amount in $)
Riadh Jeddah Dammam
Allocation of maintenance cost 8,929 10,714 5,357
Riadh (500012/1400040*25000)
Jeddah (600018/1400040*25000)
Dammam (300010/1400040*25000)
Allocation of personnel cost 5,357 6,429 3,214
Riadh (500012/1400040*15000)
Jeddah (600018/1400040*15000)
Dammam (300010/1400040*15000)
Total cost allocated to each restaurant 14,286 17,143 8.571
Q 2. Incremental contribution from accepting order of 20,000 units - $ 180,000 [(36-12-9-6)*20,000]
As fixed cost is sunk cost because it will be applied even though extra units are produced or not.
Therefore. the manufacturer should accept the offer.
Q 3. a) Allocation of joint costs using the physical output method.
Product A (400,000 / 1,600,000 * 400,000) $100,000
Product B (400,000 / 1,600,000 * 400,000) $100,000
Product C (800,000 / 1,600,000 * 400,000) $200,000
TOTAL COST $400,000
(b) Allocation of joint costs using the net realizable value
method
Product A (20 / 36
*
400,000)
$222,222
Product B (13 / 36 * 400,000) $144,445
Product C (3 / 36 * 400,000) $33,333
TOTAL COST $400,000
(c) Allocation of joint costs using sales value at split-off point method
Product A (20 / 50 * 400,000) $160,000
Product B (18 / 50 * 400,000) $144,000
Product C (12 / 50 * 400,000) $96,000
TOTAL COST $400,000
topic:- Cost accounting * no hand writing *the answer must be unique not copied "plagiarized "...
topic:- Cost accounting * no hand writing *the answer must be unique not copied "plagiarized " Assignment Question(s): Q1. Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of...
Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees. Number of Square Feet Employees Support Departments: Maintenance 1,000 15 Personnel 1,000 8 Operating Departments: Riadh 5,000 12 Jeddah 6,000 18 Dammam 3,000 10 If the restaurant uses the...
Q1: Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees. Number of Square Feet Employees Support Departments: Maintenance 1,000 15 Personnel 1,000 8...
Q1. Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees. Number of Square Feet Employees Support Departments: Maintenance 1,000 15 Personnel 1,000 8 Operating Departments:...
Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees. Number of Square Feet Employees Support Departments: Maintenance 1,000 15 Personnel 1,000 8 Operating...
Taha Compagny produces three products: Product A, Product B, and Product C. During the year the joint costs of processing the three products were $400,000. Production and sales value information were as follows: Sales Value Product Units at Split-Off Separable Costs Selling Price A 400,000 $20 per unit $ 20 per unit $40 per unit B 400,000 $18 per unit $ 15 per unit $28 per unit C 800,000 $12 per unit $14 per unit $17 per unit a. Allocate the joint costs using the physical output method. b. Allocate the joint costs using the net realizable value method....
Q 3 Taha Compagny produces three products: Product A, Product B, and Product C. During the year the joint costs of processing the three products were $400,000. Production and sales value information were as follows: Sales Value Product Units at Split-Off Separable Costs Selling Price A 400,000 $20 per unit $ 20 per unit $40 per unit B 400,000 $18 per unit $ 15 per unit $28 per unit C 800,000 $12 per...
Q 3 Taha Company produces three products: Product A, Product B, and Product C. During the year the joint costs of processing the three products were $400,000. Production and sales value information were as follows: Sales Value Product Units at Split-Off Separable Costs Selling Price A 400,000 $20 per unit $ 20 per unit $40 per unit B 400,000 $18 per unit $ 15 per unit $28 per unit C 800,000 $12 per unit $14 per unit $17 per unit...
topic:- integrated Enterprise Systems * no hand writing *the answer must be unique not copied “plagiarized “ SAM creates a production order for the requested 12 cars. For each car, raw materials are expected to cost $750, wheel assemblies (semi finished goods) $430. The actual time (labor) required to build one car is 49 minutes and hourly rate is $50 Calculate the estimated cost of the production order and provide the financial impact using" T" account
topic:- integrated Enterprise Systems * no hand writing *the answer must be unique not copied “plagiarized “ 1- SAM creates a production order for the requested 12 cars. For each car, raw materials are expected to cost $750, wheel assemblies (semi finished goods) $430. The actual time (labor) required to build one car is 49 minutes and hourly rate is $50 2- don’t forget to do the Calculate the estimated cost of the production order and provide the financial impact...