LAB. COST ACCOUNTING JOINT COST

PT. GENBU produces 3 products in 1 department. These three combined products are: A; B; and C. Considering cost efficiency, the costing system is based on a process-costing mechanism. The company uses a weighted average cost flow assumption to account for work in process inventory. Data relating to operations for the month of February 2008 in are:

INFORMATION RELATING TO COMBINED PRODUCTION COSTS

Number of units in beginning inventory BDP 400 Number of units that started processing during the current period 1600 Number of units transferred to Perced Brg during the current period 1700 Number of units in BDP ending inventory (75% completed for raw materials, 40% for TK, and 25% for overhead) 300

(in rupiah) Costs Charged to Production Department Beginning Inventory Added in Current Month Raw Material 8,961,500 34,312,500 Direct Labor 1,176,000 7,378,000 Factory Overhead 1,900,000 14,998,000

INFORMATION RELATING TO COMBINED PRODUCT COST ALLOCATION:

Product Unit Produced Unit (in kg/unit) Weighing Factors Final Market Price per Unit A 400 8 5 150,000 B 500 6 4 100,000 C 800 4 3 75,000

Instructions: Allocate the costs of the GENBU joint products (total production costs) and calculate the unit production costs for each product if the joint-cost allocation uses:

a. Average unit cost method b. Weighted average method based on units of kg c. Quantitative unit method d. Market value method (Salable at Split Off Point) e. Market value method (Not-Salable at Split Off Point) with additional processing fees for each department as follows: A = Rp.5.000.000,-, B = Rp.5.000.000, and C = Rp.10,000,000,-