Process Costing

The total production of G is 420,000 – 20,000 = 400,000. The total production of H is the same as that of HH = 330,000 – 30,000 = 300,000
Therefore the total production in the joint process is 700,000, and the cost per unit is 350,000 / 700,000 = $0.50 per unit.

H is then turned into HH at an extra cost of 66,000 / 300,000 = $0.22 per unit.
Therefore the total cost of HH is $0.72 per unit and you value the closing inventory on that amount.

Hi Mr. John

I need some help solving this question from the Revision kit. I have watched the lectures yet i cannot seem to solve it. Please help me understand how to arrive at the answer.

12.6)
Two products G and H are created from a joint process. G can be sold immediately after split-off.
H requires further processing before it is in a saleable condition. There are no opening inventories and no
work in progress. The following data are available for last period:
$
Total joint production costs 384,000
Further processing costs (product H) 159,600
Product Selling price Sales Production
per unit Units Units
G $0.84 400,000 412,000
H $1.82 200,000 228,000
Using the physical unit method for apportioning joint production costs, what was the cost value of the
closing inventory of product H for last period?
A $36,400
B $37,520
C $40,264
D $45,181

Thank you so much Mr. John