Problem 5Ilang Ilang company manufactures Products A and B from a joint process which also yields a by-product. Ilang ilang accounts for the revenue from its by-product sales as a deduction from the cost of goods sold of its main products. Additional information follows: ABCTotalUnits produced15,0009,0006,00030,000Joint Costs???264,000Sales Value at Split off290,000150,00010,000450,000 Joint products are allocated using the relative sales value at split off approachWhat was the joint cost allocated to Product B?

Joint cost means the cost incurred to produce more than one units and then joint cost need to be…

Answered: Problem 5 Ilang Ilang company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Problem 5

Ilang Ilang company manufactures Products A and B from a joint process which also yields a by-product. Ilang ilang accounts for the revenue from its by-product sales as a deduction from the cost of goods sold of its main products. Additional information follows:

	A	B	C	Total
Units produced	15,000	9,000	6,000	30,000
Joint Costs	?	?	?	264,000
Sales Value at Split off	290,000	150,000	10,000	450,000

Joint products are allocated using the relative sales value at split off approach

What was the joint cost allocated to Product B?

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