Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the...

 

Transcribed Image Text:

Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25) Tricycle Ltd produces three joint products, A, B and C. These products become identifiable after the first process but are processed further before being sold. One ton of material input to the first process produces 300 units of A, 150 units of B and 50 units of C. Monthly costs and selling prices at a normal capacity level of 30 tons input are as follows: First process Fixed Variable per ton of input Additional processing Fixed Variable per unit Selling price per unit At split-off point After additional processing 1. A 600 units 300 2. 10 000 2 400 BC A 12 000 1,20 с 100 6,50 9,80 If a decision was taken to sell any one of the products at split-off point the additional fixed processing costs for that product would be saved in full. B 7 000 1,60 During November, 50 tons of input was completely processed. All sales were made after the additional process had taken place. At the end of the month a stock count took place, the results of which were: 5,50 11,20 с 1 000 2,20 7,80 8,70 All these units had been subjected to 100% further processing and were ready for sale. Stock is valued on an absorption costing basis. There was no opening stock. Required Prepare profit statement in total and per product for the month assuming that joint costs are apportioned on the basis of physical units. Advise management whether the products should be sold at split-off point or after further processing. Support your recommendations with appropriate calculations.(25)

Answer rating: 100% (QA)

1 Profit Statement Total and Per Product Lets calculate the joint costs allocation based on the physical units produced Total Joint Costs Fixed Joint ... View the full answer