ACCT 301 SEU Relevant Information for Decision Making Questions

College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 14/01/2022 @ 23:59
Course Name: Cost Accounting
StudentàName:
Course Code: ACCT 301
StudentàID Number:
Semester: 2nd
CRN:24962
Academic Year: 1444 H
For InstructoràUse only
InstructoràName: Dr. Youssef RIAHI
Students rade:
/15
Level of Marks: High/Middle/Low
Instructions LEASE READ THEM CAREFULLY
he Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
ssignments submitted through email will not be accepted.
tudents 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.
tudents must mention question number clearly in their answer.
ate submission will NOT be accepted.
void 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.
ll 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.
ubmissions without this cover page will NOT be accepted.
College of Administration and Finance Sciences
Assignment Question(s):
(Marks 15)
Q1. What information is relevant for decision-making? Differentiate between relevant and
irrelevant information for decision-making. Support your answer by explaining the information
in the context of an organization.
(3 Marks)
Note: Your answer must include suitable examples of relevant and irrelevant information for
decision-making.
(Week 2, Chapter 1)
Answer:
Q2. A&D Ltd. is in the manufacturing of wooden products and makes several wooden items.
The following values are related to a particular wooden item:
Particulars
Selling price per unit
SAR 1,100
Variable cost per unit
SAR 400
Total fixed costs
SAR 500,000
Estimated next yearàbudgeted sales 1,200 units
You are required to calculate:
a) BEP in units and BEP in sales SAR
(4 Marks)
College of Administration and Finance Sciences
b) Degree of operating leverage
c) Margin of safety in units
d) Margin of safety in SAR
(Week 4, Chapter 3)
Answer:
Q3. The information below was derived from the 2018 records of HCS Company:
Month
May
June
July
August
September
October
November
December
Units Produced
4,350
4,700
5,000
5,400
5,650
5,900
3,450
4,100
(4 Marks)
Total Cost (SAR)
44,200
44,700
45,000
45,400
47,500
57,150
40,000
40,600
Using the high-low method of analysis, calculate
i.
Variable cost
ii.
Fixed cost, and
iii.
Determine a cost function.
Answer:
(Week 3, Chapter 2)
College of Administration and Finance Sciences
Q4. The following transactions are related to a particular job. You are required to make the
necessary journal entries.
(4
Marks)
a) The materials storeroom receives a shipment of direct and indirect materials that cost
SAR 50,000.
b) Materials are sent to the stamping and assembly areas. The cost of the direct materials
is SAR 5,600 and the cost of the indirect materials is SAR 3,200.
c) Wages totaling SAR 7,000 are accrued; 60% of these costs are direct labor and 40% are
indirect labor.
d) Overhead costs are allocated to work in process using an allocation rate of 250% of direct
labor costs.
e) Job no. 25, with a total cost of SAR 8,500 is completed.
f) Job no. 25 is shipped to the customer, who is billed for SAR 15,000.
(Week 5, Chapter 5)
Answer:

Purchase answer to see full
attachment