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Chapter 9
Physical units method of apportioning joint costs:
Total units = 5,000 + 7,500 = 12,500 units
X: $50,000 ÷ 12,500 units × 5,000 units = $20,000
Y: $50,000 ÷ 12,500 units × 7,500 units = $30,000
The net realisable value method of apportioning joint costs:
Calculate the total net realisable value:
X: (5,000 units × $15) – $10,000 = $65,000
Y: (7,500 units × $8) – $5,000 = $55,000
Total net realisable value = $120,000
Calculate the joint cost allocation:
X: $50,000 ÷ $120,000 × $65,000 = $27,083
Y: $50,000 ÷ $120,000 × $55,000 = $22,917
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