Ltd processes and purifies a basic chemical which is then broken down by reaction to give three separate products Explain the approaches to joint cost allocation using the following information Joint costs incurred up to the split off point are 2,000 Product ABC Units produced 3,000 1,000 2,000 Final market value per unit () 5 00 4 00 3 00 Costs beyond split off point () 4,000 1,800 2,400

Question: Ltd processes and purifies a basic chemical which is then broken down by reaction to give three separate products. Explain the approaches to joint cost

Ltd processes and purifies a basic chemical which is then broken down by reaction to give three separate products. Explain the approaches to joint cost allocation using the following information: Product ABC Units produced 3,000 1,000 2,000 Final market value per unit

Joint costs incurred up to the split-off point are £2,000.

Product ABC Units produced 3,000 1,000 2,000 Final market value per unit () 5.00 4.00 3.00 Costs beyond split-off point () 4,000 1,800 2,400

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In cost accounting joint cost allocation refers to the process of allocating the costs incurred up to the splitoff point among the different products ... View full answer

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