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

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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

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Question 5

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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

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Question 6

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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

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Question 7

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How much are the selling expenses apportioned to Main product?

a.

RO 2,850

b.

RO 333

c.

RO 667

d.

RO 1,900

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Question 8

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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

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Question 9

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Select the job order procedure step in which production planning duration is mentioned.

a.

Completion of jobs