Q1: The following information relates to ALFAHD Corporation (AMOUNTS IN SAUDI RIYAL)

Advertising Costs

SR12,470

Administrative Salaries

28,700

Delivery Vehicle Depreciation

1,000

Factory Repair and Maintenance

910

Indirect Labor

11,700

Indirect Materials

9,360

Manufacturing Equipment Depreciation

2,080

Office Rent

42,300

President's Salary

60,000

Sales Revenue

450,000

Sales Salary

38,000

Required:

How much were ALFAHD period costs and product costs?

Answer:

Q2: ALFAHD Manufacturing Company completed Job 1 and 2 in last month and the company uses job costing system and it uses normal costing system to apply manufacturing overhead. The cost details of Job 1and 2 are shown below:( amounts in riyal Saudi)

Job 1

Direct labor cost

20,000

Direct materials cost

30,000

Machine hours used

10

Direct labor hours

50

Predetermined overhead allocation rate per direct labor hour

SR 70

Job 2

Direct labor cost

25,000

Direct materials cost

35,000

Machine hours used

15

Direct labor hours

40

Predetermined overhead allocation rate per direct labor hour

SR70

Required: Calculate the total job cost for Job 1 and 2 separately.

Answer: