HAHA manfactures products R, S and T from a joint process. Below are additional information:Question: How much is the joint cost allocated to S using sales value split off method. STOTALUnits8,0004,0002,00014,000P120,000P200,000P30,000P250,000Joint Costs??P18,000Sales value @ split-offP120,000??Further Processing costsP14,000P10,000P6,000Sales value of FGP140,000P60,000P50,000

Joint cost means cost incurred on common process from which we get different products. Now joint…

R ТОTAL Units 4,000 ? 2,000 P18,000 8,000 14,000 Joint Costs P120,000 Sales value @ split-off Further Processing costs P120,000 ? ? P200,000 P14,000 P10,000 P6,000 Р30,000 Sales value of FG P140,000 P60,000 P50,000 P250,000

R ТОTAL Units 4,000 ? 2,000 P18,000 8,000 14,000 Joint Costs P120,000 Sales value @ split-off Further Processing costs P120,000 ? ? P200,000 P14,000 P10,000 P6,000 Р30,000 Sales value of FG P140,000 P60,000 P50,000 P250,000

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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Similar questions

Give the general formula for a mixed cost. What does each term represent? Provide an example of a product or service with a mixed cost.
From a decision-making point of view, should joint costs be allocated among joint products?
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When the selling division is a full capacity, the goal congruent transfer price will be the: market price actual full cost actual variable cost standard full cost actual variable cost plus markup
Cost-volume-profit analysis is used to make many decisions, including product pricing and controlling costs. What are the limitations of using operating leverage to predict profitability?
Which of the following is the most commonly used method for assignment of joint costs? a. Relative sales value b. Split-off method c. Average production cost d. Relative percentage of direct costs basis
Which is the best description of a dual transfer price? A) The receiving division is charged the market value of the item transferred while the supplying division is credited with the standard variable cost B) The receiving division is credited the market value of the item transferred while the supplying division is charged with the standard variable cost C) The receiving division is charged the standard variable cost transferred while the supplying division is credited with the market value of the item D) The receiving division is credited the standard variable cost transferred while the supplying division is charged with the market value of the item
what is The weighted average method when it comes to allocating joint costs