When Upsilon is a joint product the joint cost is to be allocated to three products...

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When Upsilon is a joint product the joint cost is to be allocated to three products on the basis of net realizable va three products by multiplying the joint cost with percentage of net realizable value of particular product as follow: Joint cost of Sigma-640,00060% =384,000 Joint cost of Tau-640,00030% =192,000 Joint cost of Upsilon-640,00010% =64,000 If Upsilon is by product then the allocation to main products to be done for a value subtracting the sales of by pro the joint cost and sales. The revised percentage of sales on which joint cost to be allocated is percentage Revised percentage Sigma 60 Tau total 30 90 66.67 33.33 100 The joint cost to be allocated should be = 640,000 70,000 = 570,000 The joint cost allocated as follows Sigma Tau Total Revised percentage 66.67 33.33 100 Joint cost 380,000 190,000 570,000 When Upsilon is a joint product the joint cost is to be allocated to three products on the basis of net realizable va three products by multiplying the joint cost with percentage of net realizable value of particular product as follow: Joint cost of Sigma-640,00060% =384,000 Joint cost of Tau-640,00030% =192,000 Joint cost of Upsilon-640,00010% =64,000 If Upsilon is by product then the allocation to main products to be done for a value subtracting the sales of by pro the joint cost and sales. The revised percentage of sales on which joint cost to be allocated is percentage Revised percentage Sigma 60 Tau total 30 90 66.67 33.33 100 The joint cost to be allocated should be = 640,000 70,000 = 570,000 The joint cost allocated as follows Sigma Tau Total Revised percentage 66.67 33.33 100 Joint cost 380,000 190,000 570,000

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The image you sent describes a method for allocating joint costs to three products Sigma Tau and Upsilon based on their net realizable value NRV Heres a breakdown of the information in the image Scena... View the full answer