Ko-Ka-Ku Limited produces three main products from a joint manufacturing process. Fuel oil, gasoline, Kerosene and...
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Ko-Ka-Ku Limited produces three main products from a joint manufacturing process. Fuel oil, gasoline, Kerosene and Crude-l are the products emerging from the joint manufacturing process. Crude-l is aby-product and is sold at split-off, while the joint products fuel oil, gasoline and kerosene need to be processed further. Additional inventory and sales volume information (all in litres) is as follows: Products Opening inventory Sales units Closing inventory Fuel oil 1 000 10 000 2 000 Gasoline 2 000 12 000 3 000 Kerosene 3 000 15 000 4 000 Crude-l 5 000 The joint costs are N$248 000. The revenue from the sales of the by-product is used to reduce the joint costs. The company allocates joint costs using the physical measurement method. Crude-l incurred NS2 000 in other costs. Fuel Oil (NS) Gasoline (NS)Kerosene (NS) Crude-l (NS) Selling price per litre at split- 20 off 30 35 10 Selling price per litre after further process 50 60 45 Further processing cost per 20 litre 35 Required: Calculate the joint cost to be allocated to product Kerosene. NB: Don't insert currency symbol. Ko-Ka-Ku Limited produces three main products from a joint manufacturing process. Fuel oil, gasoline, Kerosene and Crude-l are the products emerging from the joint manufacturing process. Crude-l is aby-product and is sold at split-off, while the joint products fuel oil, gasoline and kerosene need to be processed further. Additional inventory and sales volume information (all in litres) is as follows: Products Opening inventory Sales units Closing inventory Fuel oil 1 000 10 000 2 000 Gasoline 2 000 12 000 3 000 Kerosene 3 000 15 000 4 000 Crude-l 5 000 The joint costs are N$248 000. The revenue from the sales of the by-product is used to reduce the joint costs. The company allocates joint costs using the physical measurement method. Crude-l incurred NS2 000 in other costs. Fuel Oil (NS) Gasoline (NS)Kerosene (NS) Crude-l (NS) Selling price per litre at split- 20 off 30 35 10 Selling price per litre after further process 50 60 45 Further processing cost per 20 litre 35 Required: Calculate the joint cost to be allocated to product Kerosene. NB: Don't insert currency symbol.
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Production Sales Ending Inventory Opening Inventory F... View the full answer
Related Book For
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
Posted Date:
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