Accounting Question

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: (1 Mark)
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.
Answer:

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? (1.5 Mark)
Answer:

Q3. ABC Ltd. is preparing a budget for 2015. Following are the information related with budget preparation: (1.5 Mark)
Budgeted selling price per unit = $150 per unit
Total fixed costs = $80,000
Variable costs = $50 per unit
Required:
Prepare flexible budget for 1,200, 1,400, 1,600 and 1,800 units.
Answer:

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. (1 Mark)
Answer:

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