Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3 (10 marks) konohalid manufactures 2 joi

QUESTION 3 (10 marks) Konohalid manufactures 2 joint products. Both products require additional processing beyond...

60.1K

Verified Solution

Question

Accounting

image

QUESTION 3 (10 marks) Konohalid manufactures 2 joint products. Both products require additional processing beyond the split-off point. There were no opening inventories at 1 Jul2012. The following information relates to the month of Jul Production (unit) Sales (units) Closing inventories (units) Selling price per unit Additional processing costs Leaf 520,000 280.000 240.000 $36 $3,500,000 Sand 250,000 110,000 140.000 526 $1,900,000 Total joint processing costs for Jul were $8,500,000. The closing inventories are finished goods that are ready for sale. Required: (a)Determine the cost of the ending inventories of each of the products as at 31 Jul 2012 using the physical method (2 marks) (b)Determine the cost of the ending inventories of each of the products as at 31 Jul 2012 using the net realisable value method (3 marks) (c)Determine the cost of the ending inventories of each of the products as at 31 Jul 2012 using the constant gross margin method (3 marks) (d) Leaf" could be processed further into "Root" for an additional cost of $10.00 per unit. "Root" would sell for $48.00 per unit. Should the company produce "Root"? Show the necessary computation to justify your decision

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students