Question
LABORATORY. COST ACCOUNTING JOINT COST PT. GENBU produces 3 products in 1 department. These three combined products are: A; B; and C. By considering cost
LABORATORY. COST ACCOUNTING JOINT COST
PT. GENBU produces 3 products in 1 department. These three combined products are: A; B; and C. By considering cost efficiency, the costing system is based on process-cost mechanism. The company uses the weighted average cost flow assumption to consider 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 started during the current period 1600 Number of units transferred to Perced Brg Jadi 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 Materials 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 cost 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 costs for each department as follows: A = Rp.5.000.000,-, B = Rp.5.000.000, and C = Rp.10,000,000,-
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