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Production cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Production cost

  • This topic has 1 reply, 1 voice, and was last updated 9 months ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 15, 2025 at 4:31 pm #718434
    AvatarDibasbadhu
    Participant
    • Topics: 3
    • Replies: 6
    • ☆

    Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires further
    processing into product 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 the last period:
    $
    Total joint production costs
    450,000
    Further processing costs of product H
    66,000
    Product
    Production units
    Closing inventory
    G
    345,000
    20,000
    HH
    230,000
    34,500
    3. Using the physical unit method for apportioning joint production costs, what was the total cost of the closing inventory of
    product HH for the last period?(Answer in $)

    My question in why do we need to closing inventory form production unit for both products.. I didn’t get it

    July 16, 2025 at 7:01 am #718440
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    The costs should be apportioned on the number of units produced. Are you sure that you have copied the question (or checked the answer) correctly?

  • Author
    Posts
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