Worth Inc. manufactures products A, B and C from a joint process. Additional information is as follows: Total 7,000 Р 60,000 P100,000 ? A Units produced Joint cost Sales value at SO 4,000 P36,000 1,000 ? 2,000 P 7,000 P70,000 P 5,000 P30,000 P15,000 Р 3,000 P20,000 Cost after SO SV at final point 22. Assuming that joint products are allocated using the net realizable value at split- off approach, what joint costs were allocated to product B and C? a. P12,000 for B and P12,000 for C b. P14,400 for B and P 9,600 for C c. P15,000 for B and P 9,000 for C d. P16,000 for B and P 8,000 for C
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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