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

Cost Classification, What are the importance of cost classification

What are the importance of cost classification

Relationship among financial accounting and cost accounting, Relationship a...

Relationship among Financial Accounting and Cost Accounting The difference among management and cost accounting may be highlighted by using a number of questions namely as;

Calculate the average cost, Seventeen new bathing suit stores enter the San...

Seventeen new bathing suit stores enter the Santa Barbara market, joining the seven that already existed. As a consequence, the demand schedule facing Swim N Style (and all other s

Financial accounting, Financial Accounting It is the analysis, and rec...

Financial Accounting It is the analysis, and recording and classification of financial transactions and the ascertainment of how that information will be reported to the diffe

Assignment, what are the three of product costs in manufacturing company,di...

what are the three of product costs in manufacturing company,discuss in detail each and supporting with examples.

Accounting case study, Accounting Case Study: The Champlain Career Con...

Accounting Case Study: The Champlain Career Consulting Corporation ("CCCC") is owned by three Trent graduates. Incorporated in 2009, CCCC provides a wide-range of career plann

Prepare a statement of comprehensive income, Good Food Company is a local m...

Good Food Company is a local manufacturer of instant noodles. Established in 2005, their business has been growing steadily. Their products, which are available in 3 flavors, are s

Accounting, Ask What is the major value of the weighted cost of capital cal...

Ask What is the major value of the weighted cost of capital calculation for the firm? question #Minimum 100 words accepted#

Organize the accounting entries, JK is a motor dealership which organizes i...

JK is a motor dealership which organizes its financial statements to 30 November. In the year to 30 November 2009, transactions integrated the following: (a) JK had motor vehicl

Answer, Chen Enterprises purchased 67,000 pounds (cost = $616,400) of direc...

Chen Enterprises purchased 67,000 pounds (cost = $616,400) of direct material to be used in the manufacture of the company''s only product.

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