Cost Accounting /Acct301

College of Administration and Finance Sciences

Assignment (2)
Deadline: Thursday 27/11/2025 @ 23:59
Course Name: Cost Accounting

Student’s Name:

Course Code: ACCT 301

Student’s ID Number:

Semester: 1st Semester

CRN:13932
Academic Year: 1447 H

(2025-26)

For Instructor’s Use only
Instructor’s Name: Ahmed Alhadaithi
Students’ Grade:

/15

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.

College of Administration and Finance Sciences

Assignment Questions:

(Marks 15)

1. Metro Toys are making two types of toys namely ‘Supreme’ and ‘Deluxe’.
Metro Toys has only 200,000 machine hours available per year. The following
information is provided for both the products.
Supreme

Deluxe

Selling Price per unit

SAR 50

SAR 30

Variable Cost Per Unit

SAR 25

SAR 10

8

2

Required Machine Hours/Unit

Required:
a) Determine the Total Contribution Margin in SAR if Only ‘Deluxe’ Toys are
produced.

(2.5 Marks)

b) Determine the Total Contribution Margin in SAR if Only ‘Supreme’ Toys
are produced.

(2.5 Marks)

Solution:

2. Akbar Inc. has two support departments (Accounting and Information
Technology) and Two Operating Departments of Producing Plastic Products and
Metal Products. The cost information of all these departments and allocation
bases are given below:
Support Department

Operating Department

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Accounting
Cost

40,000

Information

Plastic

Metal

Total

Technology

Products

Products

64,000

120,000

160,000

384,000

(SAR)
Possible Allocation Bases:

No. of

Support Department

Operating Department

Accounting

Information

Plastic

Metal

Technology

Products

Products

Total

5

8

15

25

53

24

36

320

480

860

Employees
No. of
Computers
Accounting Department’s Cost will be allocated using number of employees and
Information Technology Department’s cost will be allocated using number of
computers.
Required:
Allocate the Support Department Cost to Operating Department using Direct
Method.
(Step by Step Calculation is required).

(5 Marks)

Note: Show your solution through table.
Solution:

3. Freshly Juice company produces three products differently. These products are
jointly produced upto certain stage and then after they are identified separately.
The joint cost of processing these products are SAR 160,000. You are required to

College of Administration and Finance Sciences

allocate this Joint Cost among the three different product by using the following
methods.
a) Sales Value at Split Off Method
b) Net Realizable Value (NRV) Method

(2.5 Marks)
(2.5 Marks)

The quantitative information of these products are as follows:
Products

A
B
C

KG Produced Selling Price
Per KG at
Split Off
20,000
SAR 1.2
40,000
SAR 1.4
80,000
SAR 0.8

Note: Show your solution through table.

Solution:

Final Sale
Value

Separable
Cost

70,000
94,000
80,000

6,000
9,000
10,000

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