Lipex Pty Ltd produces two products (A and B) from a particular joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint production costs for the year were $60 000. Sales values and costs are as follows.
Allocate the joint production costs based on the physical units method. What are the joint costs assigned to product B?

Question

Lipex Pty Ltd produces two products (A and B) from a particular joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint production costs for the year were $60 000. Sales values and costs are as follows. 
Allocate the joint production costs based on the physical units method. What are the joint costs assigned to product B?

Quizplus · Accepted Answer

The Answer of Lipex Pty Ltd produces two products (A and B) from a particular joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint production costs for the year were $60 000. Sales values and costs are as follows. 
Allocate the joint production costs based on the physical units method. What are the joint costs assigned to product B?

Lipex Pty Ltd Produces Two Products (A and B) from a Particular