Products A, B, C and D are produced in a joint process. All products emerge in...

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Products A, B, C and D are produced in a joint process. All products emerge in a saleable condition and no further processing is necessary. Work-in-progress does not occur. During Month 3, joint costs amounted to RM800,000 and details of production and sales were as follows: Product Production Sales Selling Price per kg Kg Kg RM A 40,000 36,000 15 B 50,000 40,000 14 C 50,000 42,000 16 20,000 18,000 20 All stocks of unsold products at the end of the month were valued at RM5 per kg. There were no stocks of finished products at the beginning of the month. Required (a) Define the following: (i) joint product (ii) by-product. (b) State what basis of joint cost apportionment has been used to arrive at the stock valuation of RM5 per kg. (c) Using alternative basis of apportionment, produce calculations to show the closing stock valuation for each product and in total. (d) State by how much the reported profit for Month 3 would have increased or decreased if alternative basis of apportionment had been used. marks) (Total 20 Products A, B, C and D are produced in a joint process. All products emerge in a saleable condition and no further processing is necessary. Work-in-progress does not occur. During Month 3, joint costs amounted to RM800,000 and details of production and sales were as follows: Product Production Sales Selling Price per kg Kg Kg RM A 40,000 36,000 15 B 50,000 40,000 14 C 50,000 42,000 16 20,000 18,000 20 All stocks of unsold products at the end of the month were valued at RM5 per kg. There were no stocks of finished products at the beginning of the month. Required (a) Define the following: (i) joint product (ii) by-product. (b) State what basis of joint cost apportionment has been used to arrive at the stock valuation of RM5 per kg. (c) Using alternative basis of apportionment, produce calculations to show the closing stock valuation for each product and in total. (d) State by how much the reported profit for Month 3 would have increased or decreased if alternative basis of apportionment had been used. marks) (Total 20

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Answer a Definitions i Joint product A joint product is a product that is produced alongside one or ... View the full answer