Process Costing: Joint Products (part a)

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  1. Avatar of admirableprinces admirableprinces says:
    December 16, 2012 at 4:17 pm

    lots lots of thanx for the nice lecture & diagram explanation but i have some concept not clear

    of joint product &by-product in bbp we have 2 Question it mention b-product sales revenue is credited to the process account here in this question we deduct the the by-product amount from total joint cost

    Another question it mentioned the by -product is credited to the sales account there we r not deducting the by-product amount from total joint product amount plz explain me this thanx

    • Avatar of admirableprinces admirableprinces says:
      December 16, 2012 at 4:21 pm

      this also a by -product of 1000 kg which has a commerciAL value of $ 600 what commercial value means selling price or wht ?

    • Avatar of johnmoffat johnmoffat says:
      December 17, 2012 at 1:44 pm

      @admirableprinces, There is no ‘law’ about how to deal with a by-product. Usually we subtract the value of the by-product from the total join costs (which is the same as crediting the process account). However, if the question says to treat the revenue as sales then you do what you are told, and in this case we do not reduce the join cost.

      Commercial value is the same as sales value.

  2. Avatar of M. Osman Kamran M. Osman Kamran says:
    September 23, 2012 at 12:47 pm

    Great explanation.

  3. Avatar of mithu415 mithu415 says:
    August 17, 2012 at 3:37 pm

    i like it very much…

  4. Avatar of Katerina Katerina says:
    June 16, 2012 at 10:09 am

    Great explanation on joint products!

  5. Avatar of ahumad ahumad says:
    May 22, 2012 at 2:29 am

    great sir….

  6. Avatar of rosiczka80 rosiczka80 says:
    April 21, 2012 at 1:22 pm

    excellent,such a simple explanation

  7. Avatar of angeria angeria says:
    April 6, 2012 at 3:39 am

    great…. explanation can’t be any easier

  8. Avatar of fortissimo fortissimo says:
    February 22, 2012 at 6:26 pm

    Great stuff, sir. Haven’t seen anything better.

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