Cost Accounting Assignment
1- Prepare the journal entries for the following: (4 Points)
a. When raw materials are received, Give an example
b. When raw materials are sent to the factory floor, Give an example
c. When a job is completed, what happen to the cost, Give an example
d. Overhead expenses ( salary) paid by cheque $ 5000
e. Utilities (Indirect expenses) paid in cash $ 10000
f) Salaries totaling $5,000 are accrued; 35% of these costs are direct labor, 40% are indirect labor and 25% are overhead expense. Prepare the journal entry.
g) Overhead costs are allocated to work in process using an allocation rate of 150% of direct labor costs and 300% of overhead expenses.
Prepare the journal entry. (Give different examples- examples should not be same)
2- Riyadh Electricity Company manufactures chandeliers . Following is information for next year's operations, based on an estimated volume of 20,000 units: 4 marks
Expected revenues $1,000,000
Unit costs:
Direct materials $ 6.25
Direct labor 15.75
Variable overhead 5.50
Fixed manufacturing overhead 2.50
Total $30.00
Other fixed costs:
Administration, marketing, etc. $225,000
Income tax rate 30%
a. What is the breakeven point for next year?
b. What is next year's projected after-tax income?
c. Suppose the managers set a target after-tax income of $100,000. Estimate the number of units that must be sold.
3-Ahmed has budgeted next year's sales at 8,000 units. (2 marks )
Compute Ahmed's degree of operating leverage. If P = 1,000, V = 400, F = 850,000.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.