A company manufactures two joint products, P and R, in a common process. Data for June are as follows. $ Opening inventory 1,000 Direct materials added 10,000 Conversion costs 12,000 Closing inventory 3,000 Production Sales Sales price Units Units $ per unit P 4,000 5,000 5 R 6,000 5,000 10 12.1 If costs are apportioned between joint products on a sales value basis, what was the cost per unit of product R in June? A $1.25 B $2.22 C $2.50 D $2.75
A company manufactures two joint products, P and R, in a common process. Data for June are as follows. $ Opening inventory 1,000 Direct materials added 10,000 Conversion costs 12,000 Closing inventory 3,000 Production Sales Sales price Units Units $ per unit P 4,000 5,000 5 R 6,000 5,000 10 12.1 If costs are apportioned between joint products on a sales value basis, what was the cost per unit of product R in June? A $1.25 B $2.22 C $2.50 D $2.75
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company manufactures two joint products, P and R, in a common process. Data for June are as follows.
$
Opening inventory 1,000
Direct materials added 10,000
Conversion costs 12,000
Closing inventory 3,000
Production Sales Sales price
Units Units $ per unit
P 4,000 5,000 5
R 6,000 5,000 10
12.1 If costs are apportioned between joint products on a sales value basis, what was the cost per unit of
product R in June?
A $1.25
B $2.22
C $2.50
D $2.75
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