A Factory produces two products, 'A' and 'B' from a single process. The joint processing costs...

 

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A Factory produces two products, 'A' and 'B' from a single process. The joint processing costs during a particular month are : Direct Material 30,000 Direct Labour 9,600 Variable Overheads 12,000 Fixed Overheads 32,000 Sales: A-100 units@ 600 per unit; B-120 units @ *200 per unit. 1. Apportion joints costs on the basis of: II. (i) Physical Quantity of each product. (ii) Contribution Margin method, and Determine Profit or Loss under both the methods. A Factory produces two products, 'A' and 'B' from a single process. The joint processing costs during a particular month are : Direct Material 30,000 Direct Labour 9,600 Variable Overheads 12,000 Fixed Overheads 32,000 Sales: A-100 units@ 600 per unit; B-120 units @ *200 per unit. 1. Apportion joints costs on the basis of: II. (i) Physical Quantity of each product. (ii) Contribution Margin method, and Determine Profit or Loss under both the methods.

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The fixed cost of 32000 is to be apportione... View the full answer