Compute for the joint cost allocated to Reta.
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.
Compute for the joint cost allocated to Reta.
![Land Company produces joint products Jana and
Reta, together with by-product Bynd, Jana is sold at
split-off, but Reta and Bynd undergo additional
processing. Production data pertaining to these
proficts follow:
Jana
Reta
Bynd
Total
Joint costs:
Variable
P88,000
148,000
Fixed
Separable costs:
Variable
P120,000 P3,000 123,000
90,000
Fixed
1,000
1,000
92,000
Profit
Production (Ibs.) 50,000
Sales price/lbs.
40,000 10,000 100,000
P 7.50
P 4.00
P 1.10
There is no beginning or ending inventories.
No
materials are spoiled in production.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9b9303a-9eb8-40b5-93b3-1e67d433ffea%2Ffaaa3d6d-bb5c-4c13-8bc1-84b8aded210b%2Fv0iqv88_processed.png&w=3840&q=75)
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