Question
Q3. OFL Ltd. manufactures plastic products and makes three products, P1, P2 and P3. In 2016, the joint costs of three products were SAR 135,000.
Q3. OFL Ltd. manufactures plastic products and makes three products, P1, P2 and P3. In 2016, the joint costs of three products were SAR 135,000. Following are the details related to the number of units and selling price per unit: (4 Marks)
| Product | Units | Selling Price per unit |
| P1 | 6,000 | SAR 30 |
| P2 | 3,000 | SAR 20 |
| P3 | 1,000 | SAR 15 |
Allocate the joint costs to each product using: (Chapter 9)
- Physical volume method
- Sales value at the split-off method
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Conservation Easement IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304133923, 978-1304133922
