Cost accounting

Assignment 3

Deadline: 21/11/2020 @ 23:59

For Instructor’s Use only

Instructions

· 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 answered 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.

Q 1 Provide numerical example of assigning support department cost and discuss the purpose of assigning support department costs (Week 10: Chapter 8, Measuring and Assigning Support Department Costs).

(2 marks)

Q 2 LMN Compagny produces three products K, L and M. During the year, the joint costs

of processing the three products were $480,000.

Production and sales value information were as follows:

Sales Value

Product Units at Split-Off Separable Costs Selling Price

K 500,000 $13 per unit $6.00 per unit $40 per unit

L 300,000 $12 per unit $4.00 per unit $37 per unit

M 200,000 $8 per unit $3.00 per unit $28 per unit

Allocate the joint costs using the physical output method.

(Week 11: Chapter 9, Joint product and by – Product costing)

(1.5 marks)

Q 3 Provide numerical examples of static and flexible budget and discuss how these budgets could be used to evaluate the performance of the managers (Week 12: Static and flexible budgets).