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 pro(#ucts follow: Jana Reta Вynd Total Joint costs: Variable Fixed P88,000 148,000 Separable costs: Variable P120,000 P3,000 123,000 90,000 Fixed Profit 1,000 1,000 92,000 Production (lbs.) 50,000 Sales price/lbs. 40,000 10,000 100,000 P 7.50 P 4.00 There is no beginning or ending inventories. P 1.10 No materials are spoiled in production.
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.
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