ACCT301 Cost Accounting and Qualitative Factors


Q1.  DCT Corporation are in the manufacturing of soft drinks and produces three products X, Y and Z. During the year 2014, the joint costs of processing the three products were SAR 450,000. The following are the information related with production and sales value:
Product    Units    Sales Value at Split-Off    Separable Costs        Selling Price
X    675,000         SAR 25 per unit         SAR 11.00 per unit          SAR 75 per unit
Y    525,000         SAR 21 per unit         SAR 7.00 per unit          SAR 68 per unit
Z    300,000         SAR 17 per unit         SAR 7.00 per unit           SAR 52 per unit
Allocate the joint costs to each product using the physical output method. 
Q2. What are “Non-routine Operating Decisions?” Examine any one non-routine operating decision with suitable example and discuss what quantitative and qualitative factors should be considered in making such decision?
Q3. ABC Ltd. is preparing a budget for 2015. Following are the information related with budget preparation:  
Budgeted selling price per unit     =     $150 per unit
Total fixed costs             =     $80,000
Variable costs             =     $50 per unit
Prepare flexible budget for 1,200, 1,400, 1,600 and 1,800 units. 
Q4. Explain with suitable examples why the support department costs are allocated to operating department? Briefly explain any one method of such allocation with numerical examples. 

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