Sharpest Ltd produces three products (A, B and C) and one by-product (D) in its joint process. The following information relates to production at the end of the current month:ProductUnits producedSales value at split offFurther processing costsFinal sales valueA13000R18R24R3B18000R28N/AR28C22000R26N/AR26D4500R1.5R1R4If the total cost of the joint process was R286000 and the sales value at split off method is used by Sharpest Ltd to apportion the costs, calculate the total costs attributable to product A. a.R48675.57b.R50825.14c.R50283.21d.R47268.35e.R55146.40

Total joint process cost is be apportioned on the basis of sales value at split of point Market…

Answered: Sharpest Ltd produces three products…

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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Sharpest Ltd produces three products (A, B and C) and one by-product (D) in its joint process. The following information relates to production at the end of the current month:

Product	Units produced	Sales value at split off	Further processing costs	Final sales value
A	13000	R18	R24	R3
B	18000	R28	N/A	R28
C	22000	R26	N/A	R26
D	4500	R1.5	R1	R4

If the total cost of the joint process was R286000 and the sales value at split off method is used by Sharpest Ltd to apportion the costs, calculate the total costs attributable to product A.

R48675.57

R50825.14

R50283.21

R47268.35

R55146.40

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