Question
. Abdelaziz Co. produces 3 types of products. (3 marks) During the year the joint costs of processing the 3 products were $350,000. Production and
. Abdelaziz Co. produces 3 types of products. (3 marks)
During the year the joint costs of processing the 3 products were $350,000.
Production and sales value information were as follows:
Sales Value
Product Units produced at Split-Off Separable Costs Selling Price
Product A 400,000 $10 per unit $6.00 per unit $40 per unit
Product B 300,000 $9 per unit $4.00 per unit $28per unit
Product C 500,000 $6 per unit $3.00 per unit $18 per unit
a. Allocate the joint costs using the physical output method.
b. Allocate the joint costs using the net realizable value method.
c. Allocate the joint costs using sales value at split-off point method.
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