Question
LM Company produces three products (A, B, and C) in a joint process. Information related to these three products for the most recent year is
LM Company produces three products (A, B, and C) in a joint process. Information related to these three products for the most recent year is given below:
| A | B | C | Total | |
| allocated joint cost | ? | 24,000 | ? | 60,000 |
| Sales value from further processing | 90,000 | 85,000 | 125,000 | 300,00 |
| Additional processing costs | ? | ? | 71,000 | 120,00 |
Company uses the net realizable value method to allocate joint costs to products.
Calculate the amount of additional processing costs for Product A.
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Auditing and Assurance Services An Applied Approach
Authors: Iris Stuart
1st edition
73404004, 978-0073404004
