Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

National Furniture Showroom makes building material from timber land in Gujrat City. They bought =1,00,000/- Rs worth of timber wood for furniture manufacturing . The

National Furniture Showroom makes building material from timber land in Gujrat City. They bought =1,00,000/- Rs worth of timber wood for furniture manufacturing . The timber also costs the business =10,000/- as a transportation charges. And =5,000/- Rs paid to labor for loading and unloading timber wood. After splitting off the lumber and plywood (to build new homes) is expecting the high sales value while the wood grains have a low sales value. The showroom manager is of the view that the business has to assign the separable processing cost of Rs=14000/- to lumber and Rs=18,000/- to plywood. Then business sold the lumber to Talha limited =70,000/- and plywood to Nasir limited to =80,000/-. The wood grains are also sold to Ali & Co for =2500/- Rs. On the basis of the above data Allocate joint costs to products based on the Net Realizable value Method? (3 Marks) Q NO 19: On the basis of the data available in Q No 18, how will you treat the proceeds from wood grains in your accounting? What will be your opinion about the situation if wood grains has a separable processing cost of =700/- ?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Services Marketing

Authors: Jochen Wirtz

4th Edition

1292425199, 9781292425191

More Books

Students explore these related Accounting questions