Page 43 - P1 Integrated Workbook STUDENT 2018
P. 43
Other elements of cost accounting systems
Solution
Physical measurement
Kgs produced
Product A 100
Product B 200
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Total 300
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Share of joint costs:
Product A: 100 kg/300 kg × $750 = $250 = $2.50/kg
Product B: 200 kg/300 kg × $750 = $500 = $2.50/kg
Market value at the separation point
Kgs produced Selling price per kg Market value
Product A 100 $5 $500
Product B 200 $2 $400
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$900
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Share of joint costs:
Product A: $500/$900 × $750 = $416.67 = $4.17/kg
Product B: $400/$900 × $750 = $333.33 = $1.67/kg
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