Question
A factory producing article X also produces a by-product Y which is further processed into finished product. The joint cost of manufacturing is given below:
A factory producing article X also produces a by-product Y which is further processed into finished product. The joint cost of manufacturing is given below:
Material | RO 8,000 |
Labor | RO 4,000 |
Overheads | RO 2,000 |
Subsequent costs are given below:
| X | Y |
Material | RO 2,000 | RO 4,000 |
Labor | RO 4,000 | RO 3,000 |
Overheads | RO 2,400 | RO 2,600 |
Sales value for X is RO 20,000 and Y is RO 30,000 Estimated profits on selling prices are 40% for X and 30% for Y. Assume that selling and distributing expenses are in proportion of subsequent cost of material. a. Show how you would apportion joint cost of manufacture. b. Prepare a statement showing cost of production of X and Y.
Calculations should be made to the nearest riyal.
After preparing the necessary statements, MCQs 4,5,6,7 and 8 should be answered.
Question 4
Not yet answered
Marked out of 1.00
Flag question
Question text
What is the amount of labor joint cost apportioned to by product?
a.
RO 933
b.
RO 3,067
c.
RO 1,457
d.
RO 2,000
Clear my choice
Question 5
Not yet answered
Marked out of 1.00
Flag question
Question text
What is the amount of material joint cost apportioned to main product?
a.
RO 6,133
b.
RO 1,867
c.
RO 1,086
d.
RO 1,000
Clear my choice
Question 6
Not yet answered
Marked out of 1.00
Flag question
Question text
What is the amount of labor joint cost apportioned to main product?
a.
RO 933
b.
RO 543
c.
RO 3,067
d.
RO 1,500
Clear my choice
Question 7
Not yet answered
Marked out of 1.00
Flag question
Question text
How much are the selling expenses apportioned to Main product?
a.
RO 2,850
b.
RO 333
c.
RO 667
d.
RO 1,900
Clear my choice
Question 8
Not yet answered
Marked out of 1.00
Flag question
Question text
What is the amount of overhead joint cost apportioned to by product?
a.
RO 467
b.
RO 729
c.
RO 1,533
d.
RO 1,000
Clear my choice
Question 9
Not yet answered
Marked out of 1.00
Flag question
Question text
Select the job order procedure step in which production planning duration is mentioned.
a.
Completion of jobs
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started