CA Inter P4 · Chapter 10 · Question 1 of 8
Joint costs of ₹4,80,000 are incurred up to the split-off point, producing 6,000 kg of product P and 10,000 kg of product Q. Using the physical units method, the joint cost apportioned to P is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) ₹1,80,000
Explanation
Under the physical units method, joint cost is shared in the ratio of output quantities: 6,000 : 10,000 = 3 : 5. Share of P = ₹4,80,000 x 6,000/16,000 = ₹1,80,000.
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