• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
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• Students must mention question number clearly in their answer.
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Q 1 Provide numerical example of assigning support department cost and discuss the purpose of assigning support department costs (Week 10: Chapter 8, Measuring and Assigning Support Department Costs).
Q 2 LMN Compagny produces three products K, L and M. During the year, the joint costs of processing the three products were $480,000.
Production and sales value information were as follows:
Product Units at Split-Off Separable Costs Selling Price
K 500,000 $13 per unit $6.00 per unit $40 per unit
L 300,000 $12 per unit $4.00 per unit $37 per unit
M 200,000 $8 per unit $3.00 per unit $28 per unit
Allocate the joint costs using the physical output method.
(Week 11: Chapter 9, Joint product and by – Product costing)
Q 3 Provide numerical examples of static and flexible budget and discuss how these budgets could be used to evaluate the performance of the managers (Week 12: Static and flexible budgets).
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