Bancroft Manufacturing produces three products in a joint process. Products A and B were 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-measures method.
(b) Allocate the joint costs using the physical-measures method assuming that product Q is considered a by-product, whose sales value is deducted from the total joint costs.

Question

Bancroft Manufacturing produces three products in a joint process. Products A and B were 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-measures method.
(b) Allocate the joint costs using the physical-measures method assuming that product Q is considered a by-product, whose sales value is deducted from the total joint costs.

Quizplus · Accepted Answer

The Answer of Bancroft Manufacturing produces three products in a joint process. Products A and B were 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-measures method.
(b) Allocate the joint costs using the physical-measures method assuming that product Q is considered a by-product, whose sales value is deducted from the total joint costs.

Bancroft Manufacturing Produces Three Products in a Joint Process