AILYN B.

TOLEDO Assignment - Accounting for Joint Cost & By-Products

A. Physical output

X Allocate joint costs = 1200

X 40000
1200 + 2800

X Allocate joint costs = ₱12,000

Y Allocate joint costs = 2800

X 40000
1200 + 2800

Y Allocate joint costs = ₱28,000

AILYN B. TOLEDO Assignment - Accounting for Joint Cost & By-Products

B. Sales value at split-off point

X Sales Value = 1200 x P70 = ₱84,000

Y Sales Value = 2800 x P45 = ₱126,000

Total Sales Value of all products at split-off ₱210,000

X Allocate joint costs = 84000 / 210000 x 40000

₱16,000

Y Allocate joint costs = 126000 / 210000 x 40000

₱24,000

C. Net realizable value of split-off

X Allocate Sales Value = [1200 x (70 -12)] = 69600

Y Allocate Sales Value = [2800 x (45 -15)] = 84000
Total ₱153,600

X Allocate joint costs = 69,600 / 153,600 x 40,000 = ₱18,125

84,000 / 153,600 x 40,000 = ₱21,875
AILYN B. TOLEDO Assignment - Accounting for Joint Cost & By-Products

A. Quantitative of physical unit method

Units Total Units TPC

A Allocate joint costs
= 4,000 / 20,000 x 10,2000 ₱20,400
B Allocate joint costs
= 6,000 / 20,000 x 10,2000 ₱30,600
C Allocate joint costs
= 10,000 / 20,000 x 10,2000 ₱51,000
Total 20000 ₱102,000 TPC
AILYN B. TOLEDO Assignment - Accounting for Joint Cost & By-Products

B. Sales Value of split-off method

Units MV at split-off Total

A Sales Value = 4000 x P15 ₱60,000
B Sales Value = 6000 x P10 ₱60,000
C Sales Value = 10000 x P8 ₱80,000
Total MV of all products at split-off ₱200,000

A Allocate joint costs = 60,000 / 200,000 x 102,000 ₱30,600

B Allocate joint costs = 60,000 / 200,000 x 102,000 ₱30,600

C Allocate joint costs = 80,000 / 200,000 x 102,000 ₱40,800

Total Production cost ₱102,000
AILYN B. TOLEDO Assignment - Accounting for Joint Cost & By-Products

C. Net realizable value ( or adjusted sales value ) method

A Sales Value = 60,000 - 20,000 ₱40,000

B Sales Value = 60,000 - 30,000 ₱30,000
C Sales Value = 80,000 - 10,000 ₱70,000
₱140,000

A Allocate joint costs

= 40,000 / 140,000 x 102,000 ₱29,580
B Allocate joint costs
= 30,000 / 140,000 x 102,000 ₱21,420
C Allocate joint costs
= 70,000 / 140,000 x 102,000 ₱51,000
₱102,000
AILYN B. TOLEDO Assignment - Accounting for Joint Cost & By-Products

a. Physical Output
AJT A 18,000 / 120,000 x 240,000 ₱36,000

B 60,000 / 120,000 x 240,000 ₱120,000

C 30,000 / 120,000 x 240,000 ₱60,000

D 12,000 / 120,000 x 240,000 ₱24,000

TOTAL 120,000 ₱240,000

AILYN B. TOLEDO Assignment - Accounting for Joint Cost & By-Products

B. Weighted Average
Units
A 18,000 x 1.50 = 27,000 x 1.6 = ₱43,200
B 60,000 x 1.30 = 78,000 x 1.6 = ₱124,800
C 30,000 x 1.20 = 36,000 x 1.6 = ₱57,600
D 12,000 x .75 = 9,000 x 1.6 = ₱14,400
TOTAL 120000 150,000 ₱240,000

Units cost= 240, 000 / 150,000 = 1.6

C. Sales value at Split-of point

A SV 18,000 x 42 = 756,000
B 60,000 x 36 = 2,160,000
C 30,000 x 18 = 540,000
D 12,000 x 12 = 144,000
TOTAL 3,600,000

A AJC 756,000 / 3,600,000 x 240,000 = ₱50,400

B 2,160,000 / 3,600,000 x 240,000 = ₱144,000
C 540,000 / 3,600,000 x 240,000 = ₱36,000
D 144,000 / 3,600,000 x 240,000 = ₱9,600
₱240,000