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.
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A company manufactures two joint products, P and R, in a common process. Data for June are as follows
Opening inventory 1,000
Direct materials added 10,000
Conversion costs 12,000
Closing inventory 3,000Production Sales Sales price
Units Units $ per unit
P 4,000 5,000 5
R 6,000 5,000 10If costs are apportioned between joint products on a sales value basis, what was the cost per unit of product R in June?
1000 + 10000 + 12000 – 3000= 20000
on a sales value basis
P 4000 units* $5=20000
R 6000 units *$10= 60000
Total= 20000+60000=80000R= (60000/80000) * 20000 = $15000
cost per unit of R= $15000/6000 units = $2.5alighere: the answer from yaaseen is correct
yaaseen: thank you for answering, but please do not answer in this forum because it is Ask the Tutor (and you are not the tutor 🙂 ). Please restrict yourself to answering in the general F2 forum.
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