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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=140000cost apportioned to P- 50000/140000*35000=$12500 which is wrong
what is the correct calculation pleaseYou should have used the sales value of the production (you have used the sales value of the units sold, which is wrong).
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