Exercise 8-5 DIFFERENT METHODS OF ALLOCATING JOINT COSTS Products A, B and C are produced from a common process and are ready for sale at the point of split-off. Join costs incurred amount to P500,000. The production data are as follows: Product Units Est. MV Weight Index Produced Per unit (kgs) Points A 500 P350 4 10 B 300 400 3 8 C 200 500 3 5 Required: Allocate the joint cost using: [a] Market value method; [b] Quantitative method; [c] Average unit cost method; [d] Index of production method
Exercise 8-5 DIFFERENT METHODS OF ALLOCATING JOINT COSTS
Products A, B and C are produced from a common process and are ready for sale at the point
of split-off. Join costs incurred amount to P500,000. The production data are as follows:
Product Units Est. MV Weight Index
Produced Per unit (kgs) Points
A 500 P350 4 10
B 300 400 3 8
C 200 500 3 5
Required: Allocate the joint cost using:
[a] Market value method;
[b] Quantitative method;
[c] Average unit cost method;
[d] Index of production method
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