Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires further processing into product HH before it is in a saleable condition. There are no opening inventories and no work in progress of products G, H or HH. The following data are available for last period:

Using the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product HH for last period?

(a) $16640

(b) $18625

(c) $20000

(d) $21600 (2 marks)
ACCA F2 Management Accounting

Transcribed Image Text:

Total joint production costs Further processing costs of product H Product G HH ($) 350 000 66000 Production Closing units inventory 420000 20000 330000 30000