- This topic has 1 reply, 2 voices, and was last updated 14 years ago by
.
- Posts
Health ltd manufactures 3 joint product, WX and y in a common process.The cost and production data for March is as follows.
opening stock 40000
direct material 80000
conversion cost 100000
closing cost 20000output and sales were as follows.
production units sales units sales price per unit
w 20000 15000 4
x 20000 15000 6
z 40000 50000 3
If cost are apportioned between joint product on market value basis, what the cost per unit of product x in marchI’m assuming the opening stock won’t count here.
Total prod cost = 200,000 (Dm+CC+ClosingC)
Total sales
W: 20,000 x 4 = 80,000
X: 20,000 x 6 = 120,000
Z: 40,000 x 3 = 120,000
Total = 320,000Cost per unit
W: 80,000/320,000 x 200,000 = 50,000
50,000/20,000 = 2.5 per unitX: 120,000/320,000 x 200,000 = 75,000
75,000/20,000 = 3.75 per unitZ: 120,000/320,000 x 200,000 = 75,000
75,000/40,000 = 1.88 per unit.The sales units are not considered.
Please correct me if I’m wrong.
Thanks
- You must be logged in to reply to this topic.