QUESTION THREE Two types of plastic piping are produced in a joint production process. UB-1 may be sold immediately after split-off. UB-2 requires further processing before it is ready for sale. There is no opening inventory. The following production data are available: Total joint cost K80 000 Additional cost of processing UB-2 K38 400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION THREE
Two types of plastic piping are produced in a joint production process. UB-1 may be
sold immediately after split-off. UB-2 requires further processing before it is ready for
sale. There is no opening inventory. The following production data are available:
Total joint cost
K80 000
Additional cost of processing UB-2
кз8 400
Sales quantity (metres)
sales price (metres) closing inventory (metres)
UB-1
200 000
КО.30
8 000
UB-2
180 000
K0.40
12 000
Required:
a). calculate the cost of closing inventory using the final sales revenue method of joint
cost allocation to the nearest K100.
Joint products
Output (kg)
Selling price per kg
5 000
к10
Y
10 000
K4
10 000
K3
Joint costs are K100 000
Required:
b). calculate the profit per unit after apportioning joint costs on the basis of physical
quantity for each product
c). calculate the total profits of all products after apportioning joint costs on the basis of
sales value.
Transcribed Image Text:QUESTION THREE Two types of plastic piping are produced in a joint production process. UB-1 may be sold immediately after split-off. UB-2 requires further processing before it is ready for sale. There is no opening inventory. The following production data are available: Total joint cost K80 000 Additional cost of processing UB-2 кз8 400 Sales quantity (metres) sales price (metres) closing inventory (metres) UB-1 200 000 КО.30 8 000 UB-2 180 000 K0.40 12 000 Required: a). calculate the cost of closing inventory using the final sales revenue method of joint cost allocation to the nearest K100. Joint products Output (kg) Selling price per kg 5 000 к10 Y 10 000 K4 10 000 K3 Joint costs are K100 000 Required: b). calculate the profit per unit after apportioning joint costs on the basis of physical quantity for each product c). calculate the total profits of all products after apportioning joint costs on the basis of sales value.
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