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Good day sir. Can you assist with this question please .
C Ltd operates a process which produces two joint products . In the period just ended costs of production totalled $417,850. Output from the process during the period was Product W 276,000 KG and Product X 334,000 KG.
There were no opening inventories of the products . Products W and X are sold in this state. Sales of the products during the period were :Product W 255,000 KG at 0.945 per KG , Product X 312,000 KG at 0.890 per kg.
Selling and admin costs are charged to products when sold at 10% of revenue .
What is the profit eared from the sales of products W , if joint costs are apportioned on the basis of weight of output ?You must surely have an answer in the same book in which you found the question. So ask about whatever it is in the answer that you are not clear about and then I will explain.
If you have been set this question as ‘homework’ then we do not do the work for you, but you can find out everything needed to answer the question by watching our free lectures on join products.
I apportioned the joint cost by using the physical measurement method and got back the production cost of the 417,850. The answers for the questions are:
A 21,122
b 23,457
c25,642
d 27,817
I am trying to figure out what should be subtracted to find the correct answer. When i apportioned Product W i got $ 181,741.807 . I am a bit lost after thatWhere did you find this question, because assuming that you have copied it out correctly then I do not think any of the choices are correct.
Given that the production costs are based on the weight of production, the production cost of the 276,000 kg of W are 276,000/ 610,000 x 417,850 = 189,060.
They sold 255,000 kg out of the 276,000 and so the cost of sales is 255,000/276,000 x 189,060 =174,675
The sales revenue is 255,000 x 0.945 =240,975
Therefore the profit from W is 240,975 – 174,675 – (10% x 240,975) = 42202.5
Do check that you copied the question correctly.
Does the printed answer not show the answer and the workings?Yes Sir i copied it correct, it was given as an handout by my MA Teacher . I attempted the question but none of my answers match the ones on the paper. I will attend class today and see what he determines is the answer.
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