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Lecture 28

Lecture 28. Lecture Overview. Splitoff Point Joint Products and By-products Why Allocate Joint Products ? Approaches to Allocating Joint Costs Sales Value at Splitoff Method.

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Lecture 28

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  1. Lecture 28

  2. Lecture Overview • SplitoffPoint • Joint Products and By-products • Why Allocate Joint Products? • Approaches to Allocating Joint Costs • Sales Value at Splitoff Method

  3. The Skantz Company manufactures three different products from a single raw material. A summary of production costs shows: Required: Distribute the total cost of $ 120000 each type of product using market value method. Calculate gross profit for each product, allocating the joint cost by the market value method. (there is no ending inventory left)

  4. The Skantz Company manufactures three different products from a single raw material. A summary of production costs shows: Required: Calculate the total product cost of each type of product. Calculate gross profit for each product, allocating the joint cost by the market value method.

  5. The Skantz Company manufactures three different products from a single raw material. A summary of production costs shows: Required: Calculate the total product cost of each type of product. Calculate gross profit for each product, allocating the joint cost by the market value method.

  6. Suppose if all of the products are not sold than how to calculate sales price and cost of goods sold

  7. Suppose if all of the products are not sold than how to calculate sales price and cost of goods sold

  8. Suppose if all of the products are not sold than how to calculate sales price and cost of goods sold

  9. Suppose if all of the products are not sold than how to calculate sales price and cost of goods sold 3750/20000=0.1875*18000=3375

  10. The Buildon Company produces three join products: A, B, C. total joint production cost for November was $21600.The units produced and unit sales prices at the split off point were: Required: allocation of the production cost, using: The market value method.

  11. End of Lecture 28

  12. The Skantz Company manufactures three different products from a single raw material. A summary of production costs shows: Required: Calculate the total product cost of each type of product. Calculate gross profit for each product, allocating the joint cost by the market value method.

  13. Suppose if all of the products are not sold than how to calculate sales price and cost of goods sold 3750/20000=0.1875*18000=3375

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