- 20 Marks
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)
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
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