Transcribed Image Text: QUESTION- JP Itd produces three joint products- A, B and C-which are then further processed. It is normal practice for the company to apportion all pre-separation costs

Transcribed Image Text: QUESTION-
JP Itd produces three joint products- A, B and C-which are then further processed. It is normal practice for the company
to apportion all pre-separation costs on the basis of weight of output of each Joint product.
Data for the last period is as follows:
Costs incurred up to separation point
£9,600
Product B
Product A
Product C
Output (kg)
100
60
80
Costs incurred after separation
2,000
1,200
800
Point selling price per kg
After further processing
50
80
60
At pre-separation point (estimate)
25
70
45
Requirements
Prepare a statement showing the profit or loss mad by each product using the present method of apportioning pre-
separation costs.
Advise the management of P Itd whether or not, on purely financial grounds, it should further process any of the three
products.

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