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College of Administration and Finance Sciences
Assignment (2)
Deadline: Saturday 30/07/2022 @ 23:59
Course Name: Managerial Accounting
Student’s Name:
Course Code: ACCT 322
Student’s ID Number:
Semester: Summer
CRN: 50283
Academic Year: 1443 H
For Instructor’s Use only
Instructor’s Name: Dr. Youssef RIAHI
Students’ Grade:
/10
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.
1
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 10)
Q 1. What do you mean by Variable and Absorption Costing? Explain both with suitable example.
[2 marks]
Answer:
Q2. Hamed Company is preparing budgets for the quarter ending June 30, 2019.
Budgeted sales in units for the next five months are:
April
May
June
July
20,000
50,000
30,000
25,000
Required:
a. Prepare Sales budget for April, May & June assuming selling price per unit is SR 15.
[2 marks]
b. Prepare production budget for April, May & June if the company wishes ending inventory as
10 % of next month sales units.
[2 marks]
Answer:
Q3. Ayob Company’s projected profit for the coming year is as follows:
Sales SAR 200,000 with Price per unit SAR 20, Total Variable cost SAR 120,000 with Variable cost
per unit SAR 12 and fixed expenses are SAR 64,000
a. Compute the break-even point in units.
[1 mark]
b.How many units must be sold to earn a profit of SAR 30,000?
[1 mark]
2
College of Administration and Finance Sciences
Q4. Ismail Company sells several products. Information of Revenues and Costs are as follows:
Selling price per unit
SAR20
Variable cost per unit is including:
Direct materials per unit
SAR4
Direct manufacturing labor per unit
SAR1
Variable Manufacturing cost per unit SAR1
Variable Selling costs per unit
Total annual fixed costs
SAR2
SAR96, 000
a. Calculate the contribution margin per unit
[0.5 mark]
b. Calculate the Contribution Margin Ratio.
[0.5 mark]
c. Calculate the breakeven point in total sales dollars a
[1 mark]
3

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