Question
Q4. Taha Company produces joint three products: Product A, Product B, and Product C. During the year, joint costs of processing the three products were
Q4. Taha Company produces joint three products: Product A, Product B, and Product C.
During the year, joint costs of processing the three products were SAR400, 000. The following information were given to you as follows:
Product | Units Produced | Selling price per unit at split-off point(SR) | Expenses per unit after split-off point ( (SR) | Selling price per unit after split-off point(SR) |
A | 400,000 | 20 | 20 | 40 |
B | 400,000 | 18 | 15 | 28 |
C | 800,000 | 12 | 14 | 17 |
Required:
a. Allocate the joint costs using the physical output method. [15 marks]
b. Allocate the joint costs using the net realizable value method. [15 marks]
c. Allocate the joint costs using sales value at split-off point method. [15 marks]
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