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 S20 of X and Y respectively Selling price per unit after further processing is S60 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 S20 of X and Y respectively Selling price per unit after further processing is S60 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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 4CMA: Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in...
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1755c790-1150-4736-ba48-cdd66b54910a%2Fcc12de3f-aad5-426a-b92d-23cb4e3d2773%2Fad00du_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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