College of Administrative and Financial Sciences
Assignment 1
Course Name: Managerial Accounting
Student’s Name:
Course Code:ACCT 322
Student’s ID Number:
Semester: 2
CRN:
Academic Year: 1440/1441 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• 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.
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Assignment Question(s):
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.
Answer:
Q2. Compare Job Order Costing versus Process costing
Answer:
Q3. ABC Company had the following inventories on May 1, 2019(amounts in SR)
Raw Material
30,000
Finished Goods 40,000
WIP – Material 20,000
WIP – Labor
20,000
WIP – Manufacturing overhead 15,000
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 Material
40,000
Finished Goods 50,000
WIP – Material 15,000
WIP – Labor
25,000
WIP Manufacturing overhead 10,000
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:
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