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 theiranswer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your ownwords, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed usingTimes 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.
Assignment Questions:(Marks 15)
Question 1 –Explain the following methods to allocate Support Department Cost to Operating Department with Suitable Numerical Example. (5 Marks)
a) Step Down Method
b) Reciprocal Method
Question 2 – ‘Grow Well Juice’ company produces three products differently. These products are jointly producedup to certain stage and afterwardsthey are identified separately as Product A, B and C. The joint cost of processing these products are SAR 120,000. You are required to allocate this Joint Cost among the three different product by using the following methods. (5 Marks)
A) Sales Value at Split Off Method
B) Net Realizable Value (NRV) Method
The quantitative information of these products are as follows:
Products
KG Produced
Selling Price Per KG at Split Off
Final Sale Value
Separable Cost
A
20,000
SAR 1.2
70,000
6,000
B
40,000
SAR 1.4
94,000
9,000
C
80,000
SAR 0.8
80,000
10,000
Question 3 – Robert Inc. is preparing a budget for 2024. The budgeted selling price per unit is $ 12, and total fixed costs for 2024 are estimated to be $ 8,000. Variable Cost are budgeted at $ 3/unit. Prepare a flexible budget for the volume level of 2000, 2500 and 3000. (5 Marks)
