Joint Products-By

Products

PROBLEM # 1
1. PROD
A
B
C

U.P.
500
300
200
1,000

USP
40
60
35

TSP
20,000
18,000
7,000
45,000

JT Cost
8,000
7,200
2,800
18,000

PROBLEM # 1
2. PROD
A
B
C

U.P
500
300
200
1,000

Ave U.C. JT Cost

18
9,000
18
5,400
18
3,600

18,000

PROBLEM # 1

3. PROD
A
B
C

Weighted
U.P
Points
units
JT Cost
500
5
2,500
7,500
300
9
2,700
8,100
200
4
800
2,400
1,000
6,000
18,000

PROBLEM # 1
4. PROD
A
B
C

U.P.
500
300
200
1,000

Total
Weight Weight JT Cost
4
2,000
6,000
10
3,000
9,000
5
1,000
3,000
6,000
18,000

PROBLEM # 2
1.
PROD
A
B
C

2.
PROD
A
B
C

U.P.
JT Cost
13,200 66,000
8,800 44,000
4,400 22,000
26,400 132,000

U.P.
13,200
8,800
4,400
26,400

APC
19,800
15,000
11,000
45,800

Total
SV
JT Cost
88,000
52,800
77,000
46,200
55,000
33,000
220,000 132,000

Total
Cost
85,800
59,000
33,000
177,800
Total
APC
Cost
19,800 72,600
15,000 61,200
11,000 44,000
45,800 177,800

PROBLEM # 3
PROD SALES APC
NRV
A
115,000 30,000 85,000
B
10,000 6,000
4,000
C
4,000
4,000
D
30,000 1,000 29,000
159,000 37,000 122,000
PROD
U.P.
A
500,000
B
10,000
C
5,000
D
9,000
524,000

USP
0.15
0.50
0.80
3.00

%
80%
80%
80%
80%

JT
Cost
GP
68,000 17,000
3,200
800
3,200
800
23,200 5,800
97,600 24,400

TSP
JTCost GP
75,000 65,946 9,054
5,000
4,396
604
4,000
3,517
483
27,000 23,741 3,259
111,000 97,600 13,400

PROBLEM # 4
PROD
M
N
O

U.P.
1,500
2,500
1,000
5,000

USP
10
12
15

Actual
PROD Sales
M
12,000
N
24,000
O
12,000
48,000

TSP
15,000
30,000
15,000
60,000

Cost of
Sales
9,120
17,280
9,600
36,000

APC
3,000
2,000
5,000
10,000

Gross
Profit
2,880
6,720
2,400
12,000

NRV
12,000
28,000
10,000
50,000

JT
Cost
8,400
19,600
7,000
35,000

Inventory
Value
(300*7.60)
(500*8.64)
(200*12)

Total Unit
Cost Cost
11,400 7.60
21,600 8.64
12,000 12.00
45,000

2,280
4,320
2,400
9,000

PROBLEM # 5
PROD
A
B
C

UNITS
30,000
30,000
60,000
120,000

USP
TSP
APC
NRV JT Cost Tot Cost
1.50 45,000
45,000 36,000 36,000
3.20 96,000 66,000 30,000 24,000 90,000
3.15 189,000 114,000 75,000 60,000 174,000
330,000 180,000 150,000 120,000 300,000
CostofProductBsold=30,000*3.00=P90,000
CostofInventoryofA=10,000*1.2=P12,000

Unit
Cost
1.20
3.00
2.90

PROBLEM # 6

PROBLEM # 6
TotalJointProductionCost
Less:NRVofby-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)
2,0008,000
netjointcostallocatedtomain
products
AllocatedusingtheNRV-M
X8,000*(20-5)
Y10,000*(25-7)
TOTALNRV

NRV
120,000(40%)
180,000(60%)
300,000(100%)

P204,000

4,000
P200,000

80,000
120,000
200,000

MULTIPLE
CHOICE
1.

C
Units
Prod Produced SP
A
8,500
6
B
9,700
5
C
6,900
4

2.

Total
Cost
Share in
MV
After SO NRV
% Joint Cost
51,000 10,200 40,800
22,440
48,500 19,400 29,100 55% 16,005
27,600
6,900 20,700
11,385
90,600
49,830

B
Product A
Share in the joint cost
22,440
Cost after split-off
10,200
Total cost
32,640

Product B
16,005
19,400
35,405

Product C
11,385
6,900
18,285

3. A
Total cost
Divide by units produced
Cost per unit
Multiply by units sold
Cost of sales

32,640
8,500
3.84
8,400
32,256

35,405
9,700
3.65
9,700
35,405

18,285
6,900
2.65
6,400
16,960

4. B
Cost per unit

49,830/25,100

P 1.985

5. A
Kilos
Total
Share in
Product Produced SV/Kilo Sales Value Percentage
Joint
Cost
JKA
4,000
11
44,000
44% x 52,000 = 22,880
JKB
3,000
10
30,000
30%
JkC
1,000
26
26,000
20%
_________
100,000
100%
52,000
Cost per kilogram of JKA

22,880/4,000 = 5.72

6. B
Sales
Additional
Product Value
Processing Cost
NRV
Cost
A
245,000
200,000
45,000
B
30,000
30,000
C
175,000
100,000
75,000
150,000
100%

Share in
Percentage
Joint
30%
20%
50% x 100,000

50,000

7.C
Sales
Additional
Product
Value
Processing Cost
Cost
A
245,000
200,000
C
175,000
100,000
43,750
120,000 100%

NRV

Share in
Percentage
Joint

45,000 37.5%
75,000 62.5% x 70,000 =

8.B
A
300,000 lbs./500,000 x 100,000
B
100,000 lbs.
C
100,000 lbs.
500,000 lbs.

60,000

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
Final
Cost
Product Sales Value
Cost
A
9,000
B
6,000
9,000
100%

beyond SO
3,000
3,000
6,600

NRV

6,000
3,000

Share in
Percentage
66.67%
.33%

Joint

4,400
2,200

Classroom Drill
1.D
ABBA 16,000 x 20 = 320,000 160,000 = 160,000 50%
ADDA 8,000 x 50 = 400,000 240,000 = 160,000 50% x
300,000=150,000
320,000

2.D
R

10,000
19,000

x 19,500,000

9,000 x 19,500,000
19,000

10,263,157

9,236,842.11

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

Sales (50,000 x 4)
200,
x Gross profit rate
12
Gross profit for Jana
24,000
Computation of gross profit rate
Sales ( 200,000 + 300,000)
500,000
Less: Cost of goods sold
Joint cost
236,000
Less: Net revenue from by-product
Sales (10,000 x 1.10)
11,000
Separable cost
( 5,000)
6,000
Net joint cost
230,000
Separable cost
210,000
Gross profit
60,000
Gross profit rate 60,000/500,000 = 12%

7.

A
Sales ( 40,000 x 7.50)
x Gross profit rate
Gross profit for Rota

8.

300,000
12%_
36,000

A
Sales
Gross profit
Separable cost
Share of Jana in the joint cost

200,000
(24,000)
(
- )
176,000

9.

B
Sales
Gross profit
Separable cost
Share of Rota in the joint cost

10.

300,000
( 36,000)
(210,000)
54,000

A
Share in the joint cost per unit
Additional processing cost per unit
Total manufacturing cost per unit

57,000/19,000 =
=