Saudi Electronic University Management Questions

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Q1. Calculate B.E.P. in units from the following Information: (3 marks)

(a) Sales $ 100,000, Variable Cost $, 50,000, Profit $, 20,000, Units Produced=5000 units

(b) Fixed Cost $= 40,000, Selling price $= 80, Variable cost $= 40


Q2. Prepare Journal Entries from the following information relating to Job Costing. (4 marks)

a)The material storeroom receives a shipment of direct and indirect materials that cost $ 12,000.

b)Materials are sent to the stamping and assembly areas. The Cost of the direct materials is $ 1,500 and the cost of the indirect materials is $ 900.

c)Wages totalling $ 2,000 are accrued; 80 % of these costs are direct labour and 20% are indirect labour.

d)Overhead costs are allocated to work in process using an allocation rate of 150% of direct labour costs.  

e)Job No. 1205, with a total cost of $ 2,500 is completed. 

f)Job No. 1205 is shipped to the customer, who is billed for $ 5,000.


Q3. In your own words, discuss how WA and FIFO calculate EUP. Give proper examples. (1.5 marks)


Q4. What are “Transferred-in costs” and Spoilage costs? And how they affect EUP calculations? (1.5 marks)


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