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Joint and By product

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › Joint and By product

  • This topic has 2 replies, 2 voices, and was last updated 2 years ago by Ken Garrett.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • September 4, 2022 at 9:20 am #665099
    protant
    Participant
    • Topics: 4
    • Replies: 9
    • ☆

    a company manufactures three products A B and C they all are processed through a common process product A and B are main product and C is the by product the common cost of the process in month of may was 150000 following is the data related to every product in month of may
    Output
    A 1000
    B 1500
    C 500
    SALES
    A 800
    B 1200
    C 400
    The NRV of by product is 2 per kg and is deducted from cost of main product selling price of product A is 100 and of B is 40 suppose that company uses sales value method for apportion joint cost What will be the profit loss of product B in may

    5500 profit
    5500 loss
    3300 profit
    3300 loss

    Sir my answer is 7950 Which is not here I have deducted the NRV from main cost and then I have devided the revenue of product B by total revenue and then multiply it by joint cost which was (150000-800)
    I did as follows
    48000/128000*149500
    And then subtract this from sales of B to find profit
    Can you please tell what i did wrong
    And the answer given is 3300 profit

    September 4, 2022 at 3:27 pm #665118
    protant
    Participant
    • Topics: 4
    • Replies: 9
    • ☆

    Sorry sir i have solved this I just watched your lecture and multiplied it with production units

    September 5, 2022 at 3:55 pm #665242
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10585
    • ☆☆☆☆☆

    Glad the lecture helped!

  • Author
    Posts
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