Prepare a statement showing the apportionment of joint expenses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ea88df9-0c41-4707-957b-7008e7a9ac95%2F66f7b665-7059-46c3-895a-42432e6c7c17%2Fm0xpj1e_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ea88df9-0c41-4707-957b-7008e7a9ac95%2F66f7b665-7059-46c3-895a-42432e6c7c17%2Fz2f8kq_processed.jpeg&w=3840&q=75)
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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