Q3. JTC Corporation is a metal product manufacturer that produces three products: A, B, and C. The joint costs of the three products in 2018 were SAR 50,000. The total number of units for each product and the selling price per unit are given below:                                  (CH 9, 2.5 Marks)

 

Product Units Selling Price per unit
A 20,000       SAR 6
B 12,500       SAR 5
C 7,500       SAR 4

 

 

Using the physical volume method and sales value at the split-off method, allocate the joint costs to each product.

Answer:

 

 

 

Q4. ABC Ltd. is preparing a budget for 2018. Following are the information related to budget preparation:                                                                                                               (CH 10, 2.5 Marks)

Budgeted selling price per unit           =          SAR 200 per unit

Total fixed costs                                 =          SAR 250,000

Variable costs                                     =          SAR 65 per unit

Required:

Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units.