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Prepare a statement showing the apportionment of joint expenses.

Prepare a statement showing the apportionment of joint expenses.

FINANCIAL ACCOUNTING
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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Problem 18 A factory produces three products L, M and N of equal value from the same manufacturing process. The costs before the split off point is RO 298,800. The number of units, Subsequent costs and profit percentages are given as under : Particulars L 10000 25 10 20% M N 12000 16000 40 60 8 16 20% 10% No. of Units Selling Price per unit in RO Subsequent costs per unit in RO Estimated profit on Sales Apportion the joint costs by using Reverse Cost Method and find profit
Transcribed Image Text:Problem 18 A factory produces three products L, M and N of equal value from the same manufacturing process. The costs before the split off point is RO 298,800. The number of units, Subsequent costs and profit percentages are given as under : Particulars L 10000 25 10 20% M N 12000 16000 40 60 8 16 20% 10% No. of Units Selling Price per unit in RO Subsequent costs per unit in RO Estimated profit on Sales Apportion the joint costs by using Reverse Cost Method and find profit
Problem 19 A company manufactures product A, B and C. The actual joint expenses of manufacture for a period were RO 63,000. It was estimated that profits on each product as a percentage of sales would be 30%, 25% and 15% respectively. Subsequent expenses were: B с A Material RO 1000 Direct wages Overheads RO 2000 RO 1500 RO 4500 RO 60,000 RO 750 RO 1250 RO 1250 RO 250 RO 3250 RO 500 Total Sales RO 40,000 RO 25,000 Prepare a statement showing the apportionment of joint expenses. RO 750 RO 1500
Transcribed Image Text:Problem 19 A company manufactures product A, B and C. The actual joint expenses of manufacture for a period were RO 63,000. It was estimated that profits on each product as a percentage of sales would be 30%, 25% and 15% respectively. Subsequent expenses were: B с A Material RO 1000 Direct wages Overheads RO 2000 RO 1500 RO 4500 RO 60,000 RO 750 RO 1250 RO 1250 RO 250 RO 3250 RO 500 Total Sales RO 40,000 RO 25,000 Prepare a statement showing the apportionment of joint expenses. RO 750 RO 1500
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