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    This document is an assignment cover sheet for a student named Simeline Jimu enrolled in the Bachelor of Commerce in Internal Auditing program. The assignment is for a Cost Accounting course, Assignment 2, due on October 17th, 2022. The assignment title is "Cost Accounting Assignment 11". The cover sheet provides the student's details including name, ID number, program, course code, and assignment number. It also includes space for the marker to provide comments and an overall mark.

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    COST ACCOUNTING ASSIGNMENT 2

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    This document is an assignment cover sheet for a student named Simeline Jimu enrolled in the Bachelor of Commerce in Internal Auditing program. The assignment is for a Cost Accounting course, Assignment 2, due on October 17th, 2022. The assignment title is "Cost Accounting Assignment 11". The cover sheet provides the student's details including name, ID number, program, course code, and assignment number. It also includes space for the marker to provide comments and an overall mark.

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    21 views4 pages

    Cost Accounting Assignment 2

    Uploaded by

    leeroy meki
    This document is an assignment cover sheet for a student named Simeline Jimu enrolled in the Bachelor of Commerce in Internal Auditing program. The assignment is for a Cost Accounting course, Assignment 2, due on October 17th, 2022. The assignment title is "Cost Accounting Assignment 11". The cover sheet provides the student's details including name, ID number, program, course code, and assignment number. It also includes space for the marker to provide comments and an overall mark.

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    © All Rights Reserved
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    of 4

    ZQMS-ARC-REC-002

    ASSIGNMENT COVER

    REGION: HARARE

    PROGRAM:BACHELOR OF COMMERCE IN INTERNAL AUDITING INTAKE: 17

    FULL NAME OF STUDENT: SIMELINE JIMU PIN:P1956751F

    MAILING ADDRESS: [email protected]

    CONTACT TELEPHONE/CELL: 0717097937 ID. NO: 63-1584795 L 63

    COURSE NAME: COST ACCOUNTING COURSE CODE:BACC309

    ASSIGNMENT NO. e.g. 1 or 2: 2 (TWO) DUE DATE:17/10/2022

    ASSIGNMENT TITLE: COST ACCOUNTING ASSIGNMENT 11

    MARKER’S COMMENTS:

    OVERALL MARK: MARKER’S NAME:

    MARKER’S SIGNATURE: DATE:


    1A. Statement of equivalent units
    MATERIALS LABOUR MATERIALS LABOUR
    output quantity % quantity % quantity % quantity
    finished goods 5500 100 5500 100 100 100 5500
    normal loss 800
    work in 1400 100 1400 50 700 40 560
    progress
    abnormal or 300 100 300 100 100 300
    actual loss
    8000 7200 6360

    $8000-$800=$7200-$1400=$5800-$5500= -$300 normal loss

    1b. Statement of cost


    MATERIALS $ LABOUR $ OVERHEADS $
    COST 32000 16250 6996
    Work in progress 1400
    Total cost 30600 16250 6996
    30600/72000 16250/6500 6996/6360
    Cost per equivalent unit 4,25 2,5 1,1

    1c Statement of evaluation =
    Finished goods= (4.25+2.5+1.1)5500=$43175
    (1400× 4.25 + 700 × 2.5 + 560 × 1.1)= $8316

    Actual loss= (4.25+2.5+1.1)300= $2355

    2ai) cost center is a department or function within an organization that does not directly add to
    profit but still costs the organization money to operate. Cost centers only contribute to a
    company's profitability indirectly.

    2aii) the cost of revenue is the total cost incurred to obtain a sale and the cost of the goods or
    services sold. Thus, the cost of revenue is more than the traditional cost of goods sold concept,
    since it includes those specific selling and marketing activities associated with a sale.

    2b) Budgeted overheads 98640× 25 = $2466000

    Budgeted machine has $54800


    Actual machine hours $52465
    $2335

    Overhead absorption rate =


    Budgeted overhead hours = 2466000
    54800
    =$45/ machine hour
    3a) Income statement using marginal cost

    $ $
    Sales (15000 @10%) 150 000
    less variable cost of sales
    variable manufacturing cost (16500×6) 99 000
    less closing cost (1 500×10) 47 143 -51 857
    contribution margin 98 143
    less variable selling admin -6 000
    92 143
    less fixed cost
    fixed manufacturing cost 33 000
    fixed selling and admin 7 500 -40 500
    net profit 51 643

    Working for closing stock

    15000⁄31500 × 99 000 = $47 143

    3b) variance in terms of machine hours


    .2 335⁄45= $105 075
    Budgeted on $2 466 000
    Actual $2570785
    $104785
    Total under absorption = (105 075 + 104 785)
    = $209 860
    REFERENCES:

    Boyd, K. (2022). Cost accounting. John Wiley & Sons, Inc.

    Harper, W. M. (1993). Cost accounting. M + E.

    Lal, J., & Srivastava, S. (2013). Cost accounting. McGraw-Hill Education (India).

    Lawrence, W. B. (1955). Cost accounting. Prentice-Hall.

    Rajasekaran, V., & Lalitha, R. (2011). Cost accounting. Pearson.

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