F2: Joint & By Product with Process costing

Two products (W and X) are created from a joint process. Both products can be sold immediately after split-off. There are no opening inventories or work in progress. The information in the picture is available for last period.

Using the sales value method of apportioning joint production costs, what was the value of the closing inventory of product X for last period?

• $310,464

• $388,080

• $155,232

• $77,616

A company manufactures two joint products, P and R, in a common process. Data for June are shown in the picture.

If costs are apportioned between joint products on a sales value basis, what was the cost per unit of product R in June?

• $1.25

• $2.22

• $2.50

• $2.75

A company manufactures two joint products, P and R, in a common process. Data for June are shown in the picture.

If costs are apportioned between joint products on a physical unit basis, what was the total cost of product P production in June?

• $8,000

• $8,800

• $10,000

• $12,000

Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires further processing before it is in a saleable condition. There are no opening inventories and no work in progress. The data in the picture are available for last period.

Using the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product H for last period?

• $36,400

• $37,520

• $40,264

• $45,181

Which of the following statements is/are correct?

(i) A by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products

(ii) Since a by-product is a saleable item it should be separately costed in the process account, and should absorb some of the process costs

(iii) Costs incurred prior to the point of separation are known as common or joint costs

• (i) and (ii)

• (i) and (iii)

• (ii) and (iii)

• (iii) only

A company manufactures two joint products and one by-product in a single process. Data for November are as follows (in the picture).

By-product sales revenue is credited to the process account. Joint costs are apportioned on a sales value basis.

What were the full production costs of product Q in November (to the nearest $)?

• $102,445

• $103,273

• $104,727

• $180,727

A company manufactures three joint products and one by-product from a single process. <br />Data for May are as follows (in the picture).

By-product sales revenue is credited to the sales account. Joint costs are apportioned on a sales value basis.

What were the full production costs of product M in May (to the nearest $)?

• $57,687

• $57,844

• $58,193

• $66,506