Description
Veenus Toys makes metal and plastic toys in separate departments. It has two support departments, Accounting and Information Systems. Veenus has decided to allocate Accounting department costs based on the number of employees in each department and Information Systems costs based on the number of computers in each department. Given the information below, use the Step Down Method to allocate support department costs.1)
|
Support Dep’ts |
Operating Departments |
Total |
|||
|
Acc-ounting |
Info Systems |
Plastic Products |
Metal Products |
||
|
Total department costs |
$32,000 |
$48,000 |
$300,000 |
$200,000 |
$580,000 |
|
Number of employees |
3 |
6 |
9 |
12 |
30 |
|
Number of computers |
6 |
8 |
10 |
16 |
40 |
1)A process that yield one or more products is called a joint process and the products so produced are called joint products. The cost of such process is called joint cost. This joint must be allocated among the joints products to determine the final cost of each product. There are four methods of allocating this cost.You are required to illustrate only one of these methods with suitable numerical example.
Prepare Flexible budget with three levels of sales volumes. Sales in units at three levels, selling price per unit, variable cost per unit and the fixed cost are to be assumed by yourself.
Assignment (2)
Deadline: Saturday 19/04/2025 @ 23:59
Course Name: Cost Accounting
Student’s Name:
Course Code: ACCT 301
Student’s ID Number:
Semester: Second
CRN: 26783
Academic Year: 1446 H
(2024-25)
For Instructor’s Use only
Instructor’s Name: Dr. Mohammed Arshad Khan
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.
Restricted – مقيد
College of Administration and Finance Sciences
Assignment Questions:
(Marks 15)
1) Veenus Toys makes metal and plastic toys in separate departments.
It has two support departments, Accounting and Information
Systems. Veenus has decided to allocate Accounting department
costs based on the number of employees in each department and
Information Systems costs based on the number of computers in
each department. Given the information below, use the Step Down
Method to allocate support department costs.
Support Dep’ts
Total department
costs
Number of
employees
Number of
computers
(5 Marks)
Operating
Departments
AccInfo
Plastic
Metal
ounting Systems Products Products
$32,000 $48,000 $300,000 $200,000
Total
$580,000
3
6
9
12
30
6
8
10
16
40
2) A process that yield one or more products is called a joint process
and the products so produced are called joint products. The cost of
such process is called joint cost. This joint must be allocated among
the joints products to determine the final cost of each product.
There are four methods of allocating this cost.
You are required to illustrate only one of these methods with
suitable numerical example.
Restricted – مقيد
(5 Marks)
College of Administration and Finance Sciences
3) Prepare Flexible budget with three levels of sales volumes. Sales in
units at three levels, selling price per unit, variable cost per unit
and the fixed cost are to be assumed by yourself.
Restricted – مقيد
(5 Marks)
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