Expanation and calculation in Cost Accounting

Question 1 – Explain the following methods to allocate Support Department Cost to Operating Department with Suitable Numerical Example.(5 Marks)

• Step Down Method
• Reciprocal Method
• Question 2 – ‘Grow
  Well Juice’ company produces three products differently. These products are
  jointly produced up to certain stage and afterwards they are identified
  separately as Product A, B and C. The joint cost of processing these products
  are SAR 120,000. You are required to allocate this Joint Cost among the three
  different product by using the following methods.

Question 3 – Robert Inc. is preparing a budget for 2024. The budgeted
selling price per unit is $ 12, and total fixed costs for 2024 are estimated to
be $ 8,000. Variable Cost are budgeted at $ 3/unit. Prepare a flexible budget
for the volume level of 2000, 2500 and 3000.

eral Instructions – PLEASE READ THEM CAREFULLY
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The Assignment must be submitted in WORD.
Be advised to make your work clear and well presented.
Please mention the question number clearly in their answers.
Avoid plagiarism, the work should be in your own words, avoid
copying from other resources without proper referencing.
All answers must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted.
Please provide a plagiarism report separately.
Also provide 3-5 references in APA style.
I will upload the textbook to you.
Thanks
Restricted – ‫مقيد‬
Assignment Questions:
(Marks 15)
Question 1 – Explain the following methods to allocate Support Department Cost to
Operating Department with Suitable Numerical Example.
(5 Marks)
a) Step Down Method
b) Reciprocal Method
Restricted – ‫مقيد‬
Question 2 – ‘Grow Well Juice’ company produces three products differently. These
products are jointly produced up to certain stage and afterwards they are identified
separately as Product A, B and C. The joint cost of processing these products are
SAR 120,000. You are required to allocate this Joint Cost among the three different
product by using the following methods.
(5 Marks)
A) Sales Value at Split Off Method
B) Net Realizable Value (NRV) Method
The quantitative information of these products are as follows:
Products
A
B
C
Restricted – ‫مقيد‬
KG Produced Selling Price
Per KG at
Split Off
20,000
SAR 1.2
40,000
SAR 1.4
80,000
SAR 0.8
Final Sale
Value
Separable
Cost
70,000
94,000
80,000
6,000
9,000
10,000
Question 3 – Robert Inc. is preparing a budget for 2024. The budgeted selling price
per unit is $ 12, and total fixed costs for 2024 are estimated to be $ 8,000. Variable
Cost are budgeted at $ 3/unit. Prepare a flexible budget for the volume level of 2000,
2500 and 3000.
Restricted – ‫مقيد‬
(5 Marks)