This document contains 6 problems related to joint products and by-products. Problem 1 has 4 sections that allocate joint costs to joint products using different allocation bases like unit price, points assigned, weight, and total weight. Problem 2 allocates joint costs based on sales value and unit price. Problem 3 allocates joint costs based on normal retail value. Problem 4 allocates joint costs based on total sales points and compares actual costs to allocated costs. Problem 5 allocates joint costs based on unit selling price and total sales points. Problem 6 allocates a net joint cost to main products based on their normal retail values.
This document contains 6 problems related to joint products and by-products. Problem 1 has 4 sections that allocate joint costs to joint products using different allocation bases like unit price, points assigned, weight, and total weight. Problem 2 allocates joint costs based on sales value and unit price. Problem 3 allocates joint costs based on normal retail value. Problem 4 allocates joint costs based on total sales points and compares actual costs to allocated costs. Problem 5 allocates joint costs based on unit selling price and total sales points. Problem 6 allocates a net joint cost to main products based on their normal retail values.
This document contains 6 problems related to joint products and by-products. Problem 1 has 4 sections that allocate joint costs to joint products using different allocation bases like unit price, points assigned, weight, and total weight. Problem 2 allocates joint costs based on sales value and unit price. Problem 3 allocates joint costs based on normal retail value. Problem 4 allocates joint costs based on total sales points and compares actual costs to allocated costs. Problem 5 allocates joint costs based on unit selling price and total sales points. Problem 6 allocates a net joint cost to main products based on their normal retail values.
This document contains 6 problems related to joint products and by-products. Problem 1 has 4 sections that allocate joint costs to joint products using different allocation bases like unit price, points assigned, weight, and total weight. Problem 2 allocates joint costs based on sales value and unit price. Problem 3 allocates joint costs based on normal retail value. Problem 4 allocates joint costs based on total sales points and compares actual costs to allocated costs. Problem 5 allocates joint costs based on unit selling price and total sales points. Problem 6 allocates a net joint cost to main products based on their normal retail values.
PROBLEM # 1 1. PROD U.P. MV/ Unit Total MV JT Cost A 500 40 20,000 8,000 B 300 60 18,000 7,200 C 200 35 7,000 2,800 1,000 45,000 18,000 18,000/ 45,000 = 40% 2. PROD U.P. JT Cost A 500 9,000 B 300 5,400 C 200 3,600 1,000 18,000 18,000/ 1,000 = 18 PROBLEM # 1 3. Points Total PROD U.P. Assigned Points JT Cost A 500 5 2,500 7,500 B 300 9 2,700 8,100 C 200 4 800 2,400 1,000 6,000 18,000 18,000/ 6,000 = 3 4. Weight Total PROD U.P. per Unit Weight JT Cost A 500 4 2,000 6,000 B 300 10 3,000 9,000 C 200 5 1,000 3,000 1,000 6,000 18,000 18,000/ 6,000 = 3 1. PROBLEM # 2 Total PROD U.P. JT Cost APC Cost A 13,200 66,000 19,800 85,800 B 8,800 44,000 15,000 59,000 C 4,400 22,000 11,000 33,000 26,400 132,000 45,800 177,800 132,000/ 26,400= 5
2. Total Total PROD U.P. SV JT Cost APC Cost A 13,200 88,000 52,800 19,800 72,600 B 8,800 77,000 46,200 15,000 61,200 C 4,400 55,000 33,000 11,000 44,000 26,400 220,000 132,000 45,800 177,800 132,000/ 220,000= 0.60 PROBLEM # 3 JT PROD SALES APC NRV % Cost GP A 115,000 30,000 85,000 80% 68,000 17,000 B 10,000 6,000 4,000 80% 3,200 800 C 4,000 4,000 80% 3,200 800 D 30,000 1,000 29,000 80% 23,200 5,800 159,000 37,000 122,000 97,600 24,400
97,600/ 122,000= 80%
PROD U.P. USP TSP JT Cost GP
A 500,000 0.15 75,000 65,946 9,054 B 10,000 0.50 5,000 4,396 604 C 5,000 0.80 4,000 3,517 483 D 9,000 3.00 27,000 23,741 3,259 524,000 111,000 97,600 13,400 PROBLEM # 4 JT Total Unit PROD U.P. USP TSP APC NRV Cost Cost Cost M 1,500 10 15,000 3,000 12,000 8,400 11,400 7.60 N 2,500 12 30,000 2,000 28,000 19,600 21,600 8.64 O 1,000 15 15,000 5,000 10,000 7,000 12,000 12.00 5,000 60,000 10,000 50,000 35,000 45,000
Actual Cost of Gross Inventory
PROD Sales Sales Profit Value M 12,000 9,120 2,880 (300*7.60) 2,280 N 24,000 17,280 6,720 (500*8.64) 4,320 O 12,000 9,600 2,400 (200*12) 2,400 48,000 36,000 12,000 9,000
35,000/50,000= .70 PROBLEM # 5
Unit PROD UNITS USP TSP APC NRV JT Cost Tot Cost Cost A 30,000 1.50 45,000 45,000 36,000 36,000 1.20 B 30,000 3.20 96,000 66,000 30,000 24,000 90,000 3.00 C 60,000 3.15 189,000 114,000 75,000 60,000 174,000 2.90 120,000 330,000 180,000 150,000 120,000 300,000
3. Cost of Product B sold = 30,000 * 3.00 = P 90,000
4. Cost of Inventory of A = 10,000*1.2 = P 12,000
120,000/ 150,000= .080
PROBLEM # 6 PROBLEM # 6 Total Joint Production Cost P 204,000 Less:NRV of by-Products: Est. SP(6*2,000) 12,000 Less: APC (2*2,000) 4,000 EXP (1*2,000) 2,000 NPM (1*2,000) 2,000 8,000 4,000 net joint cost allocated to main products P 200,000
Allocated using the NRV-M NRV
X 8,000 * (20-5) 120,000 80,000 Y 10,000 *(25-7) 180,000 120,000 TOTAL NRV 300,000 200,000 MULTIPLE CHOICE 1. C Joint PROD U.P. SP Total MV APC NRV Cost A 8,500 6 51,000 10,200 40,800 22,440 B 9,700 5 48,500 19,400 29,100 16,005 C 6,900 4 27,600 6,900 20,700 11,385 90,600 49,830 49,830/ 90,600= 0.55
2. B Product A Product B Product C Share in the joint cost 22,440 16,005 11,385 Cost after split-off 10,200 19,400 6,900 Total cost 32,640 35,405 18,285 3.A
Total cost 32,640 35,405 18,285
Divide by units produced 8,500 9,700 6,900 Cost per unit 3.84 3.65 2.65 Multiply by units sold 8,400 9,700 6,400 Cost of sales 32,256 35,405 16,960
4. B
Cost Per Unit 49,830/ 25,100 = P 1.985
5. A
PROD KGS SV/KG Total SV JT Cost
A 4,000 11 44,000 22,880 B 3,000 10 30,000 15,600 C 1,000 26 26,000 13,520 100,000 52,000 Rate 52,000/ 100,000= 0.52 6. B Cost/kg= 22,880/4,000 = 5.72 1. Sales PROD Value APC NRV JT Cost A 245,000 200,000 45,000 30,000 B 30,000 30,000 20,000 C 175,000 100,000 75,000 50,000 150,000 100,000 100,000/ 150,000= 2/3 7. C Sales PROD Value APC NRV JT Cost A 245,000 200,000 45,000 26,250 C 175,000 100,000 75,000 43,750 120,000 70,000 (45,000/ 120,000) * 70,000= 26,250 (75,000/ 120,000) * 70,000= 43,750
8. B A 300,000 lbs. /500,000 x 100,000= 60,000 B 100,000 lbs. C 100,000 lbs. 500,000 lbs. 9. C Total sales ( 245,000 + 30,000 + 175,000) 450,000 Less: Joint cost (need not be allocated 100,000 Additional processing cost 300,000 400,000 Net income 50,000
10. C Sales PROD Value APC NRV JT Cost A 9,000 3,000 6,000 4,400 B 6,000 3,000 3,000 2,200 9,000 6,600 (6,000/ 9,000) * 6,600= 4,400 (3,000/ 9,000) * 6,600= 2,200 Classroom Drill 1. D
ADDA 8,000 x 50 = 400,000 – 240,000 = 160,000 50% x 300,000=150,000 320,000 2. D
R 10,000 x 19,500,000 = 10,263,157.89
19,000
S 9,000 x 19,500,000 = 9,236,842.11
19,000 3. A Unit cost of R = 178,000/25,000 = 7.12 Computation of share in conversion cost Kilos Total Share in Prod. Produced SP MV FPC NRV % Conversion Cost R 25,000 10 250,000 30,000 220,000 88,000 S 15,000 12 180,000 20,000 160,000 40% 64,000 T 10,000 15 150,000 30,000 120,000 48,000 500,000 200,000 Computation of percentage 200,000/500,000 = 40% Computation of share in material cost and total cost
Kilos Average Share in Share in Total
Prod. Produced Cost Material Cost Conversion FPC Cost R 25,000 60,000 88,000 30,000 178,000 S 15,000 2.40 36,000 64,000 20,000 120,000 T 10,000 24,000 48,000 30,000 102,000 120,000 200,000 80,000 400,000 The most logical way of allocating materials cost is the average unit cost method. The share in material cost is computed separately because as per the problem it is only the conversion cost that is to be allocated using the net realizable value method. 4. C
Sales (15,000 kilos x 12) 180,000
Less: Total cost (see computation above) 120,000 Gross margin 60,000
5. A
Sales ( 10,000 kilos x 15) 150,000
Less: Total cost (cost of goods sold) 102,000 Selling and administrative (150,000 x 20%) 30,000 132,000 Net income 18,000 6. B
PROD OUTPUT USP @FP SV @ FP A P C N R V JOINT COSTS
Bex 1,600 P50 P80,000 P25,000 P55,000 P16,500 Rom 800 100 80,000 35,000 45,000 13,500 Totals 2,400 P160,000 P60,000 P100,000 P 30,000 7. D PROD UNITS P SV@ SOP JOINT COST X 20,000 P300,000 P168,000 Y 20,000 150,000 84,000 40,000 P450,000 P252,000 8. C X Y Z SV@SOP P25,000 P41,000 P24,000 SV @ FP 42,000 45,000 32,000 Inc in SV P17,000 P 4,000 P 8,000 Incr cost 9,000 7,000 8,000 Net inc. P 8,000 P(3,000) P -
Z’s relevant unit cost (P8,000 / 2,000 units)
9. A X only
10. A Share in the joint cost per unit 57,000/19,000 = 3.00 Additional processing cost per unit = 0.50 Total manufacturing cost per unit 3.50
