Question 1

A company manufactures two joint products, P and R in a common process,

Data for month are as follows:

Opening inventory				1,000
Direct materials added				10,000
Conversion costs				12,000
Closing inventory			3,000
Product	Production		Sales		Sales price
	Unit		Units		per unit
P	4,000		5,000		5
R	6,000		5,000		10

1. If costs are apportioned between joint products on a sales value basis, what was the cost per unit of product for P and R?

2. If costs are apportioned between joint products on based output, what was the cost total units of product for P and R?