# Process Costing – Joint Products (part b)

1. says

Hi Sir,

I made an error when i written the first question this is the corrected one sorry.I will like you to help me out with the answer for this question on Joint and By-product please I am having some complications. Thank you.

PR Ltd manufactures two joint products,P&R in a common process. Data for June are as follows.

Opening Inventory \$1000
Direct Materials \$ 10,000
Conversion Cost \$12,000
Closing Inventory \$3,000

P
Production Units – 4000

Sales Units – 5000

Sales Price \$ per unit – \$5

R
Production units – 6000

Sales units – 5000

Sales price \$ per unit – \$10

If cost are apportioned between joint products on a sales value basis, what was the cost per unit of product R in June?

• says

You must ask this question in the Paper F2 Ask the Tutor Forum, and not as a comment on a lecture.

2. says

Sir I didnt really get the bottle part? What would be the question y this final bottling thing so much matters?

Plus wouldnt 1.9 be then the cost price if it worths 1.9 wen toilet water comes out the container?

• says

It depends what you are asked for in a question – the cost when it leaves the joint process or the cost when it is finally ready for sale.

3. says

Hi Sir,

i don’t understand why you have not used Sales units (800 kg of A and 1500 kg of B) as stated at the end of the question. Kindly explain

• says

The 800 units of sales, do we use it calculate inventory as follows?

(Sales units – production units)= c.inventory units
Value of c.inventory= units * cost per unit

Or do we just leave it like it is??

• says

It obviously depends what the question is asking for, but yes – if asked to value the closing inventory you would do exactly as you have written

4. says

Hi,I don’t get where the 8.40 and 4.50 came from (S.P under production.)Please explain

• says

The 8.40 and the 4.50 are given in the question!
(I assume that you have downloaded the Course Notes with the examples in them?)

5. says

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6. says

in the last example..the professor adds the further cost back to the step where we r finding cost p.u
why do we add it back if we have already deducted it in an earlier step?
because i tried to solve the question myself as well..and in the answer..at the end of the book..they havent added the further cost in to the cost p.u

i just wanna be sure..if i should add it if i get an question relationg to cost p.u or not

• says

It was subtracted in order to get a figure for the realisable value at the point it left the joint process – this was simply for the purpose of splitting the joint costs.
As a result, the figures of \$3.16 and \$2.02 in the answer in the course notes are the costs per kg at the point at which the two products leave the joint process.
However since further work is needed after they leave the joint process, to get the final cost of the completely finished products you then need to add on the cost of the further work.
It depends what the question asks for – the costs when the products leave the joint process, or the final cost when they are fully finished.

7. says

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8. says

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9. says

I need some help, I have failed to understand how we got the figures of s.p.(8.40-4.80(further work)=3.60. for both product A & B. Anyone who clicked just help me..!!1

• says

@debbie2872, It is not 3.60 for both products. It is 3.6 for product A and 3.30 for product B.

In both cases it is the final selling price less the cost of further work done after they leave the joint process.

The net realisable value is used as though it was the value when they left the joint process.

(Check with the answers at the end of the Course Notes)

10. says

can someone tell me how he got 4000 for product A when multiplying with the ratio or 5/9ths i just keep getting 2777…
same with the product B with a ratio of 4/9ths…??