Fortune Producers manufactures three joint products, JKA, JKB, and JKC, and a by-product, JJD, all in a single process. Results for the month of July 2021 were as follows: The revenue from the by-product is credited to the sales account. Process costs are appointed on a sales value method. What was the cost per kilo of JKA for the month? A. 5.72B. 5.61C. 5.50D. 5.20 Materials used - 10,000 kg.Conversion costP24,00028,000ProductOutput KilosSales Value per kiloJKA4,0003,0001,0002,000P11JKBJKCJJD10261The revenue from the by-product is credited to the sales account. Process costs areapportioned on a sales value method. What was the cost per kilo of JKA for the month?

Joint cost: It is the cost of producing two products or services together in a single process.…

Answered: month? A. 5.72 B. 5.61

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fortune Producers manufactures three joint products, JKA, JKB, and JKC, and a by-product, JJD, all in a single process. Results for the month of July 2021 were as follows:

The revenue from the by-product is credited to the sales account. Process costs are appointed on a sales value method. What was the cost per kilo of JKA for the month?

A. 5.72

B. 5.61

C. 5.50

D. 5.20

Materials used - 10,000 kg.
Conversion cost
P24,000
28,000
Product
Output Kilos
Sales Value per kilo
JKA
4,000
3,000
1,000
2,000
P11
JKB
JKC
JJD
10
26
1
The revenue from the by-product is credited to the sales account. Process costs are
apportioned on a sales value method. What was the cost per kilo of JKA for the month?

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