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

XYZ 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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Joint costs are those costs incurred up to the point where multiple products are generated from a common input or process In the case of XYZ Ltd this common process incurs costs of 2000 before the pro... View full answer

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