1. Prepare the following journal entries for a job costing system:

1. Purchase of materials from a supplier on credit (2 marks)
2. Issues of direct and indirect materials for production (2 marks)
3. Payment of gross wages to employees (2 marks)
4. Allocation of gross wages, comprising direct and indirect wages for production (2 marks)

2. Both joint products and by-products arise from a joint production process whereby they are not separately identifiable until after they have emerged from this joint process.

1. A and B are joint product that can be sold immediately after split-off. The following information is available for last period:

No opening inventories. Total joint production costs were RM750,000.

Product Production units Sales units Selling price per unit

A 14 000 12 000 RM10

B 12 000 8 000 RM12

Using the physical unit method, compute the value of the closing inventory of product A and B for the last period. (6 marks)

2. In your view, why is the physical measures method not as satisfactory as the sales value method of joint cost allocation? (5 marks)
3. Provide and describe in detail an example of an industry that produces both joint and by-products. (6 marks)