ACCA MA · Chapter 8 · Question 10 of 12
A joint process costs $90,000 and produces 4,000 kg of Product X, which sells for $15 per kg, and 6,000 kg of Product Y, which sells for $20 per kg, at the split-off point. Using the sales value at split-off method, how much of the joint cost is apportioned to Product X?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $30,000
Explanation
Sales values: X = 4,000 x 15 = $60,000; Y = 6,000 x 20 = $120,000; total $180,000. X's share = 90,000 x 60,000 / 180,000 = $30,000. Apportioning by physical quantity would give 90,000 x 4,000 / 10,000 = $36,000.
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