Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Need help with using sales value at split off methed
- This topic has 2 replies, 2 voices, and was last updated 8 years ago by tomokka.
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- November 21, 2015 at 12:58 pm #284307
Hi,
I am trying to do homework for my university and there is one question that i just cant seem to get right.
I would really appriciate if somebody could help me solve this question and post how the calculations are done.
The information given in the questions are as follows:
Company produces direct material up to the split off point, where two products x and y are obtained.
Direct materials processed 2500 liters.
Production:
x = 1500 liters
y = 500 litersCost of purchasing 2500 liters of direct materials and processing up to split of point to yield a total of 2000 liters of good products was 10 000 €. There were no inventory balances of products X and Y.
X may be processed further to yield 1400 liters of X1 for an additional processing cost of 400 €. There was no beginnning inventory and the ending inventory was 125 liters.
Y may be processed further to yiled 400 liters of Y1 for an additional processing cost of 800 €. there was no beginning inventory and ending inventory was 25 liters.
The questions is: What is the companies business result if both x and y are further processed and the joint costs are allocated wit the value split of method?
The multiple choises given:
1. 33 950 €
2. 34 875 €
3. 36 725€Thanks in advance !
November 21, 2015 at 2:05 pm #284320I am sorry but we can not provide answers to homework questions.
Have you watched the free lecture on process costing: joint products?
November 21, 2015 at 4:01 pm #284357Hi,
Thanks for your answer.
Havent watched the free lecture, didnt even know this site provided that kind of service. Will try to find it in your site.
I dont know if the lecture would clear it up for me since i have tried to read mangerial accounting books and the problem has been in all of them that the examples that deal with sales value split of method never deal with process that happen after the split of point.
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