ACCT301 UMUC Cost accounting Questions Instructions: Answer the ALL questions. Assignments should be submitted in MS Word format Font should be Times New
ACCT301 UMUC Cost accounting Questions Instructions:
Answer the ALL questions.
Assignments should be submitted in MS Word format
Font should be Times New Roman with 14 points.
You are required to work in this assignment individually.
You should submit the assignment via the Blackboard.
Students who submit assignments after deadline, will get ZERO.
If you engaged in plagiarism, you will get ZERO marks in the assignment or course.
Question:
Prepare the journal entries for the following:
When raw materials are received, Give an example
When raw materials are sent to the factory floor, Give an example
When a job is completed, what happen to the cost, Give an example
Overhead expenses ( salary)paid by cheque $ 5000
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 Companymanufactures 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 labor15.75
Variable overhead5.50
Fixed manufacturing overhead2.50
Total$30.00
Other fixed costs:
Administration, marketing, etc.$225,000
Income tax rate30%
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.
Compute Ahmed’s degree of operating leverage. If P = 1,000, V = 400, F = 850,000.
