Randolph manufactures two joint products, J and K, in a common process. A by-product X is...

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Randolph manufactures two joint products, J and K, in a common process. A by-product X is also produced. Data for the month of December 2012 were as follows. Opening inventory Costs of processing Nil Direct material $25,500 Direct labour $10,000 Production OH are absorbed at the rate of 300% of direct labour costs. Production unit 8,000 8,000 By-product X 1,000 The sales value per unit of J.K and X is $4, So and $0.50 respectively. The saleable value of the by-product is deducted from process costs before apportioning costs to each joint product. Costs of the common processing are apportioned between product J and product K on the basis of sales value of production. Calculate individual profit for December 2012 for product J & K. Output and sales consisted of: Sales unit 7,000 6,000 1,000 Product J Product K Randolph manufactures two joint products, J and K, in a common process. A by-product X is also produced. Data for the month of December 2012 were as follows. Opening inventory Costs of processing Nil Direct material $25,500 Direct labour $10,000 Production OH are absorbed at the rate of 300% of direct labour costs. Production unit 8,000 8,000 By-product X 1,000 The sales value per unit of J.K and X is $4, So and $0.50 respectively. The saleable value of the by-product is deducted from process costs before apportioning costs to each joint product. Costs of the common processing are apportioned between product J and product K on the basis of sales value of production. Calculate individual profit for December 2012 for product J & K. Output and sales consisted of: Sales unit 7,000 6,000 1,000 Product J Product K

Answer rating: 100% (QA)

SOLUTION Direct material cost 25500 Direct labor cost 10000 Production OH 300 of direct labor ... View the full answer