Question
Company manufactures two joint products. Product line one sells at 30 per unit, while product two sells at 60 per unit. The company uses the
Company manufactures two joint products. Product line one sells at 30 per unit, while product two sells at 60 per unit. The company uses the net realizable value method for allocating joint costs.For the month of May, the production activities were as follows:
Joint production costs 55,000
Further processing costs after split off:
Product one 34,000
Product two 36,000
Number of units produced:
Product one 2,000units
Product two 1,000units
What was the joint cost allocated?
Step by Step Solution
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Step: 1
To determine the joint cost allocated using the net realizable value method we need to calculate the ...
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428858, 133428850, 133428702, 978-0133428704
