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
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?
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