SEAJOHN Oil Refinery processes three products named as DIESEL, PETROL and KEROSENE OIL by using raw material
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Question:
SEAJOHN Oil Refinery processes three products named as DIESEL, PETROL and KEROSENE OIL by using raw material which has a joint cost of $21,600. Production process for the month of July 2017 provides following information at the split-off point :
PRODUCTLITRESSALES PRICE
(per litre)
Diesel6,000$2.20
Petrol8,000$1.25
Kerosene Oil10,000$1.28
As per the recommendation of experts and production managers, each product is weighted as follows :
PRODUCTPER LITRE
WEIGHTING
Diesel0.6
Petrol0.4
Kerosene Oil0.4
You are required to allocate the joint cost to all three products using weighted average method.
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
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