The following table shows a summary of the available data on the five products for October for the year 2020: Tables Chairs Libraries Windows frames Reception Room Number of units produced 6000 4000 4000 20000 4000 Number of units sold 3000 3600 2800 1400 2400 Sales price per unit 100 40 140 24 280 Weighted unit 12 4 12 4 8 The Requirements: Allocation of the common cost among the previous five products during the month of October of the year 2020, using the weighted weights method and preparing a detailed table accordingly, showing how to allocate the joint cost of (300,000 dinars). Determine the average cost per unit for each product from the joint cost after the allocation. In the month of June 2020, during the production of the products of the company, it appeared that it had an occasional sub-product, which is a frame of art paintings, and the company sold it for 1600 dinars, but it paid 400 dinars for the expenses of the incidental product for the same month. 4- Clarify the concepts of joint products and spin-off products, explaining the most important methods of measuring and allocating joint cost of products. 5- Allocation of the shared cost between the previous five products during October of 2020 using the physical measurement method. 6- Preparing the income statement for the five products with calculating the percentage of gross profit for each of the products during October of 2020.

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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The following table shows a summary of the available data on the five products for October for the year 2020:

	Tables	Chairs	Libraries	Windows frames	Reception Room
Number of units produced	6000	4000	4000	20000	4000
Number of units sold	3000	3600	2800	1400	2400
Sales price per unit	100	40	140	24	280
Weighted unit	12	4	12	4	8

The Requirements:

Allocation of the common cost among the previous five products during the month of October of the year 2020, using the weighted weights method and preparing a detailed table accordingly, showing how to allocate the joint cost of (300,000 dinars).
Determine the average cost per unit for each product from the joint cost after the allocation.
In the month of June 2020, during the production of the products of the company, it appeared that it had an occasional sub-product, which is a frame of art paintings, and the company sold it for 1600 dinars, but it paid 400 dinars for the expenses of the incidental product for the same month.

4- Clarify the concepts of joint products and spin-off products, explaining the most important methods of measuring and allocating joint cost of products.

5- Allocation of the shared cost between the previous five products during October of 2020 using the physical measurement method.

6- Preparing the income statement for the five products with calculating the percentage of gross profit for each of the products during October of 2020.

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