Comments

    • Avatar of johnmoffat says

      When P and Q left the process, the cost per unit for both of them is the joint cost (350,000) divided by the total production (750,000 units). This gives a cost per unit of 0.46666.

      Q the has further work done (to turn it into X) at a cost of $66,000 for production of 330,000 units, which means there is an extra cost of 66000/330000 = 0.2 per unit.

      So…the total cost per unit for X is 0.46666 + 0.2 = 0.66666

Leave a Reply