Required:

(a) Explain the following terms:

(i) normal process loss;

(ii) joint product;

(iii) by-product;

and state the appropriate costing treatments for normal process loss and for by-products.

(10 marks)

(b) Calculate the apportionment of joint process costs to products A, B and C above.

(8 marks)

(c) Explain whether the initial process should be undertaken and which, if any, of the enhanced products should be produced.

(7 marks)

AAT

(b) Determine, based on financial considerations only, whether product P1 should be further processed to create product PP1.
(3 marks)

(c) In the context of process G in Corcoran Ltd, explain the difference between ‘direct expenses’ and ‘production overheads’.
(2 marks)
(12 marks)
ACCA Financial Information for Management