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Joint products and by products

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Joint products and by products

  • This topic has 0 replies, 1 voice, and was last updated 10 years ago by patience88.
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  • March 31, 2015 at 2:37 pm #239665
    patience88
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    • Topics: 4
    • Replies: 5
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    A company manufactures two main products, j and k and the by product L .The product has a net realisable value 2 dollars per litre. The following information relates to last month ,when there were no opening inventories. Production j was 50000litres and sales 45000litres, production k was 40000 and sales wer 30000litres and by product L production was 10000litres .joint cost last month were 290000 :company policy is to apportion joint costs on a physical measure basis and to treat the net realisable value of the by product as a deduction from the cost of the main products. Question is What was the cost value of last month closing inventory of product j?

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