Figure 6-1
Gilbert Production Company incurred £150,000 to manufacture the following products in a joint process: $\begin{array}{lrlr}&&&\text { Selling Price }\\text { Product }&\text { Units Produced }&\text { Weight per Unit }&\text { per Unit }\
\text { A } & 250 & 4 \mathrm{kgs} . & £ 20 \
\mathrm{~B} & 500 & 3 \mathrm{kgs} . & 40 \
\mathrm{C} & 750 & 2 \mathrm{kgs} . & 40 \
\mathrm{D} & 1,000 & 1 \mathrm{kgs} . & 20
\end{array}$
-Refer to Figure 6-1. How much joint cost would be allocated to product A based on total weight?

Question

Quizplus · Accepted Answer

To allocate the joint cost based on total weight, first calculate the total weight of all products: $250 \times 4 + 500 \times 3 + 750 \times 2 + 1000 \times 1 = 1000 + 1500 + 1500 + 1000 = 5000 \, \text{kgs}$. The weight of product A is $250 \times 4 = 1000 \, \text{kgs}$. The proportion of product A's weight to the total weight is $1000 / 5000 = 0.2$. Therefore, the joint cost allocated to product A is $£150,000 \times 0.2 = £30,000$.

Figure 6-1 Gilbert Production Company Incurred £150,000 to Manufacture the Following

Figure 6-1
Gilbert Production Company Incurred £150,000 to Manufacture the Following