Ridgeline Enterprises produces three products in a joint process. Products A and B are processed further. Additional information is as follows:

Required:
(a) Allocate the joint costs, assuming that all products are joint products and joint-costs are allocated using the physical quantities method.
(b) Allocate the joint costs using the physical quantities method, assuming that product C is considered a by-product, whose sales value is deducted from the total joint costs.

Question

Ridgeline Enterprises produces three products in a joint process. Products A and B are processed further. Additional information is as follows:
  
Required:
(a) Allocate the joint costs, assuming that all products are joint products and joint-costs are allocated using the physical quantities method.
(b) Allocate the joint costs using the physical quantities method, assuming that product C is considered a by-product, whose sales value is deducted from the total joint costs.

Quizplus · Accepted Answer

The Answer of Ridgeline Enterprises produces three products in a joint process. Products A and B are processed further. Additional information is as follows:
  
Required:
(a) Allocate the joint costs, assuming that all products are joint products and joint-costs are allocated using the physical quantities method.
(b) Allocate the joint costs using the physical quantities method, assuming that product C is considered a by-product, whose sales value is deducted from the total joint costs.

Ridgeline Enterprises Produces Three Products in a Joint Process