Angus Menzies and Company operate a process which produces two joint products. The following details are for the first week of December:

(a) To write up the process account for the week, assuming that:
(i) Joint costs are to be apportioned on a physical units basis.
(ii) The FIFO convention is to be adopted.
(iii) Waste does not arise until the end of the process when the joint products are separated.

(b) To calculate the average cost of 1000 litres of C and 1000 litres of D output during the week.

Transcribed Image Text:

Opening work-in-process: Input during week: Processing costs for the week: Output during week: Closing work in process: You are required: 5000 litres half processed, valued at a cost of 1 per litre (0.50 for direct material and 0.50 for conversion costs). 25,000 litres of A @ 0.60 per litre 15,000 20,000 litres of B @ 0.40 per litre 8,000. 41,000 22,000 litres of C, 6000 litres of D, 12,000 litres of waste - 2000 litres of this is considered to be abnormal for this level of operations; waste has a value of 5p per litre. 10,000 litres, again half processed.