Subject : cost and management accounting

I need you to solve part b only

Discussion question on methods of apportioning joint costs and the preparation of process accounts with all output fully completed (a) 'Whilst the ascertainment of product costs could be said to be one of the objectives of cost accounting, where joint products are produced and joint costs incurred, the total cost computed for the product may depend upon the method selected for the apportionment of joint costs, thus making it difficult for management to make decisions about the future of products'. You are required to discuss the above statement and to state two different methods of apportioning joint costs to joint products. (b) A company using process costing manufactures a single product which passes preparation of through two processes, the output of process 1 becoming the input to process 2. Normal losses and abnormal losses are defective units having a scrap value and cash is received at the end of the period for all such units. The following information relates to the four-week period of accounting period number 7. Raw material issued to process 1 was 3000 units at a cost of pound 5 per unit. There was no opening or closing work-in-progress but opening and closing stocks of finished goods were pound 20000 and pound 23 000 respectively. CIMA Stage 2 Cost Accounting