I have a question that how to calculate the answer
A company manufactures two joint products, P and R, in a common process.. Data for June are as follows
Opening inventory $ 1,000
Direct material added $ 10,000
Conversion costs $ 12,000
Closing inventory $ 3,000
Production units Sales units Sales price $ per unit
P 4,000 5,000 5
R 6,000 5,000 10
1) If costs are apportioned between joint products on a sales value basis, what was the cost per unit of Product R in June?
2) If costs are apportioned between joint products on a physical unit basis, what was the total cost of product P production in June?
Please explain to me.Thank you
Ask the Tutor ACCA MA
Joint product
10y ago#1The joint costs are:
For materials: 1,000 + 10,000 - 3,000 = 8,000
For conversion: 12,000.
So a total of 20,000.
With regard to the splitting, you really must watch the free lecture on this, and then you should find it no problem at all. I cannot type out the lecture here :-)
Our lectures, if you watch them in order, are a complete course for Paper F2 and cover everything you need to pass the exam.
(If you still have a problem after watching the lecture, then do ask again. However since you must have an answer to it in the same book in which you found the question, then do say which part of the answer is giving you a problem.)
Sign in to reply to this topic.