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Assignment Maf201

This document contains information about the production and costs of joint products X and Y. It shows: 1) The production process had 70,500 total units going in with 25,000 units of product X and 20,000 units of product Y produced. 2) Total production costs were Rs. 690,840 to produce the joint products. This cost was allocated to X and Y based on their output ratios. 3) Product X sold for Rs. 50 per unit and Y for Rs. 45 per unit. Product X made a profit of Rs. 971,281 and Y made a profit of Rs. 677,024. 4) By-products and normal losses were also accounted for separately

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2K views7 pages

Assignment Maf201

This document contains information about the production and costs of joint products X and Y. It shows: 1) The production process had 70,500 total units going in with 25,000 units of product X and 20,000 units of product Y produced. 2) Total production costs were Rs. 690,840 to produce the joint products. This cost was allocated to X and Y based on their output ratios. 3) Product X sold for Rs. 50 per unit and Y for Rs. 45 per unit. Product X made a profit of Rs. 971,281 and Y made a profit of Rs. 677,024. 4) By-products and normal losses were also accounted for separately

Uploaded by

miyrasally
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

QUESTION 2

a)

Statement of Equivalent Units


Input
Output

Trans-in
Units
OWIP: 5,000
OWIP: 5,000
0
Trans-in: 55,000
CP: 45,000
100
45,000
Material added: 10,500 CWIP: 15,500 100
15,500
NL: 3,525
100
3,525
AL: 1,475
100
1,475
70,500
70,500
65,500
%

NL = 0.05 x 70,500 units = 3,525 units


CP = 50,000 - 5,000 = 45,000 units

Material added
Conversion costs
Units
%
Units
50
2,500
40
2,000
100
45,000 100
45,000
80
12,400
60
9,300
100
3,525 100
3,525
100
1,475 100
1,475
64,900
61,300

Statement of Cost and Evaluation


Cost
Cost incurred
Total EQ units
Cost per EQ units

Trans-in
RM445,400
65,500 units
RM6.80

Material added
RM90,860
64,900 units
RM1.40

Conversion costs
RM98,080
61,300 units
RM1.60

Total

RM9.80

OWIP b/d

RM56,500

Current OWIP

2,500x1.40 = RM3,500

2,000x1.60 = RM3,200

RM6,700

45,000x6.80 = RM306,000

45,000x1.40 = RM63,000

3,525x6.80 = RM23,970

3,525x1.40 = RM4,935

Evaluation:
i- Finished goods

CP
Net NL
NL-NLSV
RM34,545 - RM7,050
RM27,495

45,000x1.60 = RM72,000 RM441,000


3,525x1.60 = RM5,640

TOTAL
ii- CWIP
iii- AL

RM27,495

RM531,695
15,500x6.80 = RM105,400

12,400x1.40 = RM17,360

9,300x1.60 = RM14,880

RM137,640

1,475x6.80 = RM10,030

1,475x1.40 = RM2,065

1,475x1.60 = RM2,360

RM14,455

OWIP
Trans-in
Material added
Conversion costs

Units
5,000
55,000
10,500

70,500

Process 2 Account
Total (RM)
56,500 Completed products:
445,400
X
90,860
Y
98,080
Z
NL
CWIP
AL
690,840

Cost of production (joint costs) of joint products:

Total process cost


(-) Sales income of by-products
[(5,000xRM8) - (5,000xRM2)]

RM
531,695
(30,000)
501,695

ccount
Units

Total (RM)

25,000
20,000
5,000
3,525
15,500
1,475

278,719
222,976
30,000
7,050
137,640
14,455

70,500

690,840

Cost Statement
Product
Quantity
X
25000
Y

20000

TOTAL

45000

Profit Statement
Product
Sales value (a)
X
25,000xRM50
RM1,250,000
Y
20,000xRM45
RM900,000

Apportionment ratio
(25000/45000) x 501695

Apportionment joint cost


RM278,719

(20000/45000) x 501695

RM222,976
RM501,695

Total cost (b)


RM278,719

Profit/Loss (b-a)
RM971,281

RM222,976

RM677,024

b)

Normal Loss Account


Units
CPU (RM) Total (RM)
Units
CPU (RM)
Process 2 a/c
3,525
2
7,050 Cash sales
3,525
2
3,525

c)
Process 2 a/c

Units
1,475

1,475

7,050

3,525

Abnormal Loss Account


Total (RM)
Units
CPU (RM)
14,455 Cash sales
1,475
2
SOPL
14,455

1,475

Total (RM)
7,050
7,050

Total (RM)
2,950
11,505
14,455

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