| Course Name: Managerial Accounting | |
| Course Code: ACCT 322 | |
| Semester: 2ND Semester 23-24 | |
| Academic Year: 1444 H | |
Assignment (2)
Deadline: Saturday 04/05/2024 @ 23:59
| Course Name: Managerial Accounting | Student’s Name: |
| Course Code: ACCT 322 | Student’s ID Number: |
| Semester: 2ND Semester 23-24 | CRN: |
| Academic Year: 1444 H | |
For Instructor’s Use only
| Instructor’s Name: Dr. Ashfaque Ahmed | |
| Students’ Grade: /15 | 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 answers 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.
Assignment Question(s): (Marks 15)
Assignment Question(s): (Marks 5)
Q1. ABC prepares budgets for the quarter ending sept.30. Sales in units: July 20,000, August 50,000, September.30, 000, Oct. 25,000. Selling price is SR 10 per unit. , inventory in June 31, is 4,000 units. Desired inventory is 20% of the next month sales. (5 marks)
Required: Prepare sales and production budgets.
ANSWER:
Q2. ABC Company has equipment, and it considers whether to sell it directly at a price of SR 200,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 220,000. Required:
Using the differential analysis which alternative do you recommend about the equipment. (2.5 marks)
Answer:
Q3. Riyadh Corporation has average operating assets of SR 450,000 and is required to earn a return of 35% on these assets. In the current period, the division earns net income of SR 75,000. (2.5 marks)
Required:
Compute the residual income.
ANSWER:
Q.4- Saudi and German Joint Corporation is a division of a major corporation. Last year the division had total sales of SAR 85,780,000, net operating income of SAR 8,697,570, and average operating assets of SAR 11,000,000. The company’s minimum required rate of return is 15%.
Required:
a. What is the division’s margin? [1.5 mark]
b. What is the division’s turnover? [1.5 mark]
c. What is the division’s return on investment (ROI)? [2 marks]
Answer
