Because they are joint costs – the costs of producing both of the products.
Did you watch the free lectures on this before attempting the test? The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
kudzai96 says
Question 4 is the reason l always read the comments first before attempting the practice questions
thanhvan0507 says
The last question is very tricky. Thank you.
stavroula4 says
Hello,
I don’t understand on question three why we divide the amount with (20.000+20.000) and not only with the units of product P.
John Moffat says
Because they are joint costs – the costs of producing both of the products.
Did you watch the free lectures on this before attempting the test? The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
kissme4560 says
Is really good and very tricky so be very careful. I got 4/4
John Moffat says
Great 馃檪
blakefwong says
Mr. Mofatt, the Sales Units given in question 4 was just to throw off people I presume.
John Moffat says
Not really – it is the way the examiner checks that you know to use production units and not sales units (as explained in the free lecture).