A company operates a process that produces two joint products P and Q. Last month joint cost of $35000 were incurred and the organisation apportions these cost to joint products using the sales value method.
Product P
production:12000 kg; sales 10000 kg; selling price:$5 per kg
Product Q
Production: 8000 kg; sales:9000 kg; selling price: $10 per kg
how much of the joint costs were apportioned to P last month?
my calculation:
P- 10000*5= 50000
Q-9000*10=90000
total-50000+90000=140000
cost apportioned to P- 50000/140000*35000=$12500 which is wrong
what is the correct calculation please
Ask the Tutor ACCA MA
Joint cost
11y ago#1You should have used the sales value of the production (you have used the sales value of the units sold, which is wrong).
thanks..
11y ago#3You are welcome :-)
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