Assignment Question(s):(Marks5)

Q1.In managerial accounting, costs can be classified by behavior, traceability decision-making, external reporting , prime costs vs conversion costs and Function Wise Classification. Discuss all the above cost classifications and explain the importance of each classification. (2.0 marks)

Answer:

Q2. Compare Job Order Costing versus Process costing (one marks)

Answer:

Q3. ABC Company had the following inventories on May 1, 2019(amounts in SR) (two marks)

Raw Material30,000

Finished Goods40,000

WIP Material20,000

WIP Labor20,000

WIP Manufacturing overhead15,000

During the month, the cost of material purchased was 130,000 direct labor cost incurred was 140,000 and factory overhead applicable to production was 70,000, on May 31, inventories were:

Raw Material40,000

Finished Goods50,000

WIP Material15,000

WIP Labor25,000

WIP Manufacturing overhead10,000

Required:

Prepare Journal entries on May 31, to show the flow of cost through the proper summary T accounts. Assume that sales values were 500,000 on credit

Answer:

2