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

#title.materials costing and accounting., material ledger card.following t...

material ledger card.following transactions affecting material No115-8 occurred during march 1992. march 1 balanced on hand 500 [email protected] per gallon maech 2 received 1200 gall

Determine the current profits, Two firms compete in a homogenous product ma...

Two firms compete in a homogenous product market where the inverse demand function is P = 10 - 2Q (quantity is measured in millions). Firm 1 has been in business for 1 year, while

Marginal costing and break evan point analysis, what is marginal costing an...

what is marginal costing and explain concept of marginal costing

Reserves and surplus, Reserves and surplus or retained earnings usually occ...

Reserves and surplus or retained earnings usually occur out of profitable operations. This is a surplus not distributed through the firm as dividends. Conversely, these are profits

Exercise I do not understand, what would your answer be to the following pr...

what would your answer be to the following problem, please show detailed calculations: The XYZ Company manufacturers Part 123 for use in its production line. The manufacturering co

Discount model of stock valuation-ddm, Value one stock using the dividend d...

Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model).  See chapter 18 of the textbook

Determine the relevant costs for this order, Make-or buy and relevant costs...

Make-or buy and relevant costs - The assembly division of Davenport, Inc., is bidding on an order of 50,000 smart phones. The division is eager to get this order because it has a s

Working capital accounts, Determine the additional cash a company could obt...

Determine the additional cash a company could obtain from its working capital accounts if it can improve its average collection period by three days and inventory turnover by 0.5 t

Overhead analysis, allocate the overheads to the three departments and do t...

allocate the overheads to the three departments and do the secondary allocation of service departments

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