Jean Company produces four products, which have a manufacturing cost of 672,000 at the split off point. Data pertaining to these products follow: Product A B C D Sales Value at Split pff per unit 36.00 , 10.50 , 18.00 , 16.50 Units produced 20,000 , 32,000 ,36,000 , 24,000 Weight Factors 9, 16.5, 15, 18 Required: Allocate the total joint cost using: 1. Average unit cost method or Physical output method 2. Market value method or relative sales value method 3. Weighted average method
Jean Company produces four products, which have a manufacturing cost of 672,000 at the split off point. Data pertaining to these products follow: Product A B C D Sales Value at Split pff per unit 36.00 , 10.50 , 18.00 , 16.50 Units produced 20,000 , 32,000 ,36,000 , 24,000 Weight Factors 9, 16.5, 15, 18 Required: Allocate the total joint cost using: 1. Average unit cost method or Physical output method 2. Market value method or relative sales value method 3. Weighted average method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jean Company produces four products, which have a
Product A B C D
Sales Value at Split pff per unit 36.00 , 10.50 , 18.00 , 16.50
Units produced 20,000 , 32,000 ,36,000 , 24,000
Weight Factors 9, 16.5, 15, 18
Required: Allocate the total joint cost using:
1. Average unit cost method or Physical output method
2. Market value method or relative sales value method
3. Weighted average method
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