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company’s sales in the last year in its three different markets were as follows:
$
Market 1 100,000
Market 2 150,000
Market 3 50,000
Total 300,000
In a pie chart representing the proportion of the sales made in each market what would be the angle of the section representing Market 3 (to the nearest whole degree)?Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires further processing into HH before it is in a saleable condition. There are no opening inventories and no work in progress of products G, H or HH. The following data are available for last period:
$
Total joint production costs 350,000
Further processing costs of product H 66,000Product Production
(units) Closing inventory
(units)
G 420,000 20,000
HH 330,000 30,000
Using the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product HH for last period?Dear Sir,
Please explain above two questions.
Thanks you very much
1. The total number of degrees in a pie chart is 360.
Market 1 is 100000 out of a total of 300000, so the number of degrees will be 100/300 x 360 = 120 degrees. Same idea for the others.2. The joint costs are split in proportion to the number of units produced.
So product H is given total cost of 330 / (420 + 330) x $350,000 = $154,000.
Another $66,000 is spent to turn it into HH, which means total cost is $220,000.This is for 330,000 units production. So closing inventory of 30,000 is 30/330 x $220,000.
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