Joint Costs – NBC Institute

MI – Nov 2020 – L1 – SB – Q3 – Costing Methods

Apportion joint costs of three products using the physical unit and sales value basis, and calculate profit percentages.

Question

Standard Limited produces three products, “Sta,” “And,” and “Ard,” which pass through the same process and can all be sold as good products. Total joint costs incurred amount to N3,710,000. Output and selling prices of the products are as follows:

Product	Output (Units)	Selling Price (N)
Sta	6,000	250
And	3,500	400
Ard	4,500	350

Required:
Apportion the joint costs and calculate the profit percentage using:
a. The physical unit basis. (10 Marks)
b. The sales value basis. (10 Marks)

(Total 20 Marks)

Answer

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Tags: Joint Costs, Physical Unit Basis, Profit Percentage, Sales Value Basis
Level: Level 1

Topic: Costing Methods
Series: NOV 2020

FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records

Calculating the portion of joint costs attributable to a department.

Question

X and Y are two departments that share 50% of all joint costs equally and the balance in the ratio of 2:1, respectively. If a sum of N300,000 is incurred jointly, what will be the portion attributable to X?

Answer

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Tags: Cost Allocation, Joint Costs
Level: Level 1

Topic: Accounting from Incomplete Records
Series: MAY 2012

MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques

Determines the appropriate basis for apportioning joint security costs among shop owners.

Question

The Management of Tejuosho Shopping Mall incurred a certain amount of money as joint security cost for the month of October 2014. What will be the most appropriate basis of apportioning this cost amongst the individual shop owners in the mall?
A. Value of inventory held in each store/shop
B. Cost of equipment in each shop
C. Number of workers in each shop
D. Floor area occupied by each shop
E. Turnover recorded by each shop

Answer

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Tags: Cost Apportionment, Joint Costs, Overhead Allocation
Level: Level 1

Topic: Costing Techniques
Series: NOV 2015

MI – May 2024 – L1 – SA – Q9 – Costing Techniques

Calculates profit on one product in a joint-cost situation with normal process loss.

Question

RSTU manufactures two products called S and T with a joint cost of N3,550,000. Normal process loss is 5% of expected output with scrap value of N50,000 and joint costs are apportioned based on sales value. Other data available are as follows:
Product S: 11,520 units, selling price N250
Product T: 9,750 units, selling price N320

The profit on product T is:
A. N1,515,628
B. N1,492,708
C. N1,416,000
D. N1,300,000
E. N1,274,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: apportionment, Joint Costs, Process Costing, Profit Calculation
Level: Level 1

Topic: Costing Techniques
Series: MAY 2024

MI – Nov 2020 – L1 – SB – Q3 – Costing Methods

Apportion joint costs of three products using the physical unit and sales value basis, and calculate profit percentages.

Question

Product	Output (Units)	Selling Price (N)
Sta	6,000	250
And	3,500	400
Ard	4,500	350

Required:
Apportion the joint costs and calculate the profit percentage using:
a. The physical unit basis. (10 Marks)
b. The sales value basis. (10 Marks)

(Total 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Joint Costs, Physical Unit Basis, Profit Percentage, Sales Value Basis
Level: Level 1

Topic: Costing Methods
Series: NOV 2020

FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records

Calculating the portion of joint costs attributable to a department.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Allocation, Joint Costs
Level: Level 1

Topic: Accounting from Incomplete Records
Series: MAY 2012

MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques

Determines the appropriate basis for apportioning joint security costs among shop owners.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Apportionment, Joint Costs, Overhead Allocation
Level: Level 1

Topic: Costing Techniques
Series: NOV 2015

MI – May 2024 – L1 – SA – Q9 – Costing Techniques

Calculates profit on one product in a joint-cost situation with normal process loss.

Question

The profit on product T is:
A. N1,515,628
B. N1,492,708
C. N1,416,000
D. N1,300,000
E. N1,274,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: apportionment, Joint Costs, Process Costing, Profit Calculation
Level: Level 1

Topic: Costing Techniques
Series: MAY 2024

Question Tag: Joint Costs

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MI – Nov 2020 – L1 – SB – Q3 – Costing Methods

Apportion joint costs of three products using the physical unit and sales value basis, and calculate profit percentages.

FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records

Calculating the portion of joint costs attributable to a department.

MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques

Determines the appropriate basis for apportioning joint security costs among shop owners.

MI – May 2024 – L1 – SA – Q9 – Costing Techniques

Calculates profit on one product in a joint-cost situation with normal process loss.

MI – Nov 2020 – L1 – SB – Q3 – Costing Methods

Apportion joint costs of three products using the physical unit and sales value basis, and calculate profit percentages.

FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records

Calculating the portion of joint costs attributable to a department.

MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques

Determines the appropriate basis for apportioning joint security costs among shop owners.

MI – May 2024 – L1 – SA – Q9 – Costing Techniques

Calculates profit on one product in a joint-cost situation with normal process loss.

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MI – Nov 2020 – L1 – SB – Q3 – Costing Methods

Apportion joint costs of three products using the physical unit and sales value basis, and calculate profit percentages.

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FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records

Calculating the portion of joint costs attributable to a department.

You're reporting an error for "FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records"

MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques

Determines the appropriate basis for apportioning joint security costs among shop owners.

You're reporting an error for "MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques"

MI – May 2024 – L1 – SA – Q9 – Costing Techniques

Calculates profit on one product in a joint-cost situation with normal process loss.

You're reporting an error for "MI – May 2024 – L1 – SA – Q9 – Costing Techniques"

MI – Nov 2020 – L1 – SB – Q3 – Costing Methods

Apportion joint costs of three products using the physical unit and sales value basis, and calculate profit percentages.

You're reporting an error for "MI – Nov 2020 – L1 – SB – Q3 – Costing Methods"

FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records

Calculating the portion of joint costs attributable to a department.

You're reporting an error for "FA – May 2012 – L1 – SA – Q25 – Accounting from Incomplete Records"

MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques

Determines the appropriate basis for apportioning joint security costs among shop owners.

You're reporting an error for "MI – Nov 2015 – L1 – SA – Q6 – Costing Techniques"

MI – May 2024 – L1 – SA – Q9 – Costing Techniques

Calculates profit on one product in a joint-cost situation with normal process loss.

You're reporting an error for "MI – May 2024 – L1 – SA – Q9 – Costing Techniques"

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