Determine the joint cost, Cost Accounting

Assignment Help:

Determine the Joint Cost

A company produces three products, Y1, Y2, and Y3 in the similar process.  The data below reflects average monthly results as:

 

Y1

Y2

Y3

Monthly output (kg)

40,000

20,000

20,000

Sales Value at split off (shs.)

0

30,000

105,000

Sales Value after Split off

45,000

100,000

155,000

Costs of further processing

20,000

40,000

65,000

The joint costs were Shs.100,000

Required 

Assign the joint cost employing the three methods employed to assigned joint costs.

Solution

(i)  Physical/Measurement/Unit Method

 

Y1

Y2

Y3

TOTAL

Physical Output: (Kg)

40,000

20,000

20,000

80,000

Proportion

50%

25%

25%

 

Joint costs allocated

50,000

25,000

25,000

 

(ii) Constant Gross Margin Rate Method

2043_Determine the Joint Cost.png

(iii) Net Realizable Value/Method

Net Realizable Value = Ultimate Sales Value - Separable Costs

 

Y1

Y2

Y3

TOTAL

Ultimate Sales Value:

45,000

100,000

155,000

 

Less: Separable Costs

(20,000)

(40,000)

(65,000)

 

Net Realizable Value:

25,000

60,000

90,000

175,000

Proportion on Net Realizable Value

14%

34%

52%

 

Allocation of Joint Costs:

14,000

34,000

52,000

100,000

 


Related Discussions:- Determine the joint cost

Variable production cost , From  the  following  data  write the  standard ...

From  the  following  data  write the  standard  cost  card  for  one  unit  of  the  sole  product manufactured.                                    Standard Cost card for One U

Acct 212, Cost Flow Relationships The following information is available f...

Cost Flow Relationships The following information is available for the first month of operations of Url Inc., a manufacturer of art and craft items: Sales $886,900 Gross profit

Case Study solution , I have a project for cost account and I need the sol...

I have a project for cost account and I need the solution for it

Prepare the material cost budget of products of a company, Prepare the Mate...

Prepare the Material Cost Budget of products of a Company For a company along with many products, a periodic budget would be developed given as: Assume a firm has 3 products X

Preparation of cash flow statement, To begin with, we require two successiv...

To begin with, we require two successive balance sheets and the operating statement or loss and profit account relating the two balance sheets. There are two ways wherein this s

Evaluate the income statement for the year, DF is describing its consolidat...

DF is describing its consolidated financial declaration for the year ended 31 December 2009. DF has a numerous investments in other entities. Some of these investments are provided

Material cost, distinguish between bin card and store ledgre

distinguish between bin card and store ledgre

Accounting for labour costs, Accounting for Labour costs We will conta...

Accounting for Labour costs We will contain an overview of accounting for labour costs as: a) Gross Earnings It is illustrated as item A that appears like a credit i

Explain how individual items of costs will be traced, Glaser Health Product...

Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative. Purchasing, receiving, materials and product

Stock will be selling , Atlanta Company stock is expected to follow an expo...

Atlanta Company stock is expected to follow an exponential growth rate. The relationship between the current stock price P0, future price PT after time T, and the continuously comp

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd