ACT B405F Assignment Due date: 28-3-2025 Write clearly your name, student ID and tutorial group number on the cover sheet of your answer word file. Question 1 30 marks HK Electronics Ltd. manufactures and sells three types of electronic components: Basic (B), Advanced (A), and Premium (P). These components share a common production process up to a split-off point, after which they are separately packaged. The components can be sold at the split-off point or undergo further processing, incurring additional variable costs. Last year, all three components underwent further processing. Total joint production costs were HK$150,000,000. If All Units Processed Further Additional Component Units Produced (thousands) Sales Price at Split-Off Point Sales Price at Split- Processing Off (HK$) Costs (HK$) Units Sold (thousands) Basic (B) Advanced (A) 10,000 50 70 120,000,000 10,000 8,000 80 110 72,000,000 8,000 Premium (P) 2,000 100 130 250,000,000 2,000 Required: (a) Physical Measure Method (15 marks): Determine last year's unit cost and unit gross profit for each product, assuming HK Electronics allocates joint production costs using the physical measure method (based on the number of units produced). (b) Sales Value at Split-Off Method (15 marks): Determine the unit cost and unit gross profit for each product if HK Electronics allocates joint costs using the sales value at split-off method.
ACT B405F Assignment Due date: 28-3-2025 Write clearly your name, student ID and tutorial group number on the cover sheet of your answer word file. Question 1 30 marks HK Electronics Ltd. manufactures and sells three types of electronic components: Basic (B), Advanced (A), and Premium (P). These components share a common production process up to a split-off point, after which they are separately packaged. The components can be sold at the split-off point or undergo further processing, incurring additional variable costs. Last year, all three components underwent further processing. Total joint production costs were HK$150,000,000. If All Units Processed Further Additional Component Units Produced (thousands) Sales Price at Split-Off Point Sales Price at Split- Processing Off (HK$) Costs (HK$) Units Sold (thousands) Basic (B) Advanced (A) 10,000 50 70 120,000,000 10,000 8,000 80 110 72,000,000 8,000 Premium (P) 2,000 100 130 250,000,000 2,000 Required: (a) Physical Measure Method (15 marks): Determine last year's unit cost and unit gross profit for each product, assuming HK Electronics allocates joint production costs using the physical measure method (based on the number of units produced). (b) Sales Value at Split-Off Method (15 marks): Determine the unit cost and unit gross profit for each product if HK Electronics allocates joint costs using the sales value at split-off method.
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 4.7C
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please make sure all the figures are accurate.
Transcribed Image Text:ACT B405F Assignment
Due date: 28-3-2025
Write clearly your name, student ID and tutorial group number on the cover sheet of your answer word
file.
Question 1 30 marks
HK Electronics Ltd. manufactures and sells three types of electronic components: Basic (B), Advanced (A),
and Premium (P). These components share a common production process up to a split-off point, after
which they are separately packaged. The components can be sold at the split-off point or undergo further
processing, incurring additional variable costs. Last year, all three components underwent further
processing. Total joint production costs were HK$150,000,000.
If All Units Processed Further
Additional
Component Units Produced
(thousands)
Sales Price at
Split-Off Point
Sales Price at Split-
Processing
Off (HK$)
Costs (HK$)
Units Sold
(thousands)
Basic (B)
Advanced (A)
10,000
50
70
120,000,000
10,000
8,000
80
110
72,000,000
8,000
Premium (P)
2,000
100
130
250,000,000
2,000
Required:
(a) Physical Measure Method (15 marks):
Determine last year's unit cost and unit gross profit for each product, assuming HK Electronics allocates
joint production costs using the physical measure method (based on the number of units produced).
(b) Sales Value at Split-Off Method (15 marks):
Determine the unit cost and unit gross profit for each product if HK Electronics allocates joint costs using
the sales value at split-off method.
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