Ester Limited produces two products X and Y by producing a common raw material in a common production process. The production for the month of April was 8000 units of X and 6000 units of Y. Whereas sales were 7000 units and 4000 units of X and Y respectively. Following are the other details. Selling price per unit at split off point is $25 and $20 of X and Y respectively Selling price per unit after further processing is $60 for X and $80 for Y Other expenses are as follows: Further processing expense of X and Y is $29 and $38 respectively Total Joint cost for the month is $80,000 Allocate Joint cost on the basis of: (a) Market Value Split off method (b) Net realizable value method
Ester Limited produces two products X and Y by producing a common raw material in a common production process. The production for the month of April was 8000 units of X and 6000 units of Y. Whereas sales were 7000 units and 4000 units of X and Y respectively. Following are the other details. Selling price per unit at split off point is $25 and $20 of X and Y respectively Selling price per unit after further processing is $60 for X and $80 for Y Other expenses are as follows: Further processing expense of X and Y is $29 and $38 respectively Total Joint cost for the month is $80,000 Allocate Joint cost on the basis of: (a) Market Value Split off method (b) Net realizable value method
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Ester Limited produces two products X and by producing a common raw material in a
common production process. The production for the month of April was 8000 units of X and
6000 units of Y. Whereas sales were 7000 units and 4000 units of X and Y respectively.
Following are the other details.
Selling price per unit at split off point is $25 and $20 of X and Y respectively
Selling price per unit after further processing is $60 for X and $80 for Y
Other expenses are as follows:
Further processing expense of X and Y is $29 and $38 respectively
Total Joint cost for the month is $80,000
Allocate Joint cost on the basis of:
(a) Market Value Split off method
(b) Net realizable value method
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