Martha's Meat Corporation uses a process cots system and sells a variety of cooked meat, skins and cuttings. Four joint products produced out of the process are as follows: Products Amount Produced Lit-tid 1000 Tad-yang 9000 Pang-a 400 Soup No.5 51000 The split off point for these products occurs in Division B and the costs incurred up to this point are P20000 for direct materials, P15000 for direct labor, and P7000 for Factory Overhead. What are the joint costs allocation to tad-yang by using the physical output method for Lit-tid and Tadyang Respectively?
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.
Martha's Meat Corporation uses a process cots system and sells a variety of cooked meat, skins and cuttings. Four joint products produced out of the process are as follows:
|
Products |
Amount Produced |
|
Lit-tid |
1000 |
|
Tad-yang |
9000 |
|
Pang-a |
400 |
|
Soup No.5 |
51000 |
The split off point for these products occurs in Division B and the costs incurred up to this point are P20000 for direct materials, P15000 for direct labor, and P7000 for Factory
What are the joint costs allocation to tad-yang by using the physical output method for Lit-tid and Tadyang Respectively?
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