Cost Accounting /301

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.

This Assignment is linked to CLO 1.3 (Recognize principles of decision-relevant information, cost allocation, performance accountability, and compensation systems in managerial contexts).

This Assignment Covers Chapter No. 8 (Measuring and Assigning Support Department Costs)

Assignment Questions:(Marks 10)

1. What are support departments, and why are their costs allocated to other departments. (Give any three reasons). (2 + 3 Marks).

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
	Accounting	Information Technology	Plastic Products	Metal Products	Total
Cost (SAR)	40,000	64,000	120,000	160,000	384,000

Possible Allocation Bases:

	Support Department		Operating Department
	Accounting	Information Technology	Plastic Products	Metal Products	Total
No. of Employees	5	8	15	25	53
No. of Computers	24	36	320	480	860

Accounting Departments Cost is allocated using number of employees and Information Technology Departments cost isallocated using number of computers. (5 Marks)

Required:

Allocate the Support Department Cost to Operating Department using Direct Method.

(Step by Step Calculation is required).

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