Company manufactures three main products, A, B, and C from joint process. Additional data for May production activity follows: A B C unit produced 30,000 45,000 25,000 joint cost - 500,000 sales value @ split off 70,000 75,000 55,000 additional processing cost 12,000 15,000 15,000 sales value if processed further 95,000 97,000 100,000 what is the joint costs allocated to product C using adjusted sales value method?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Company manufactures three main products, A, B, and C from joint process. Additional data for May production activity follows:
| A | B | C | |
| unit produced | 30,000 | 45,000 | 25,000 |
| joint cost - 500,000 | |||
| sales value @ split off | 70,000 | 75,000 | 55,000 |
| additional |
12,000 | 15,000 | 15,000 |
| sales value if processed further | 95,000 | 97,000 | 100,000 |
what is the joint costs allocated to product C using adjusted sales value method?
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