paramjit sharma
joint & by products
paramjit sharma
Few clarifications
Joint Products: Two or more products of almost equal economic valuesimultaneously produced from same process and RM
paramjit sharma
Few clarifications
CO-Products: Two or more products of almost equal economic valuesimultaneously produced from same process and RM
paramjit sharma
Few clarifications
Bye Products
Products of relatively small value which are incidentally andunavoidably produced in the course of manufacturing main product
paramjit sharma
Few clarifications
Joint Products: Two or more products of almost equal economic valuesimultaneously produced from same process and RM
Characteristics
Same Raw materialsProduced SimultaneouslyAlmost of Equal economic ValueFurther processing after separation
paramjit sharma
Joint Costs Subsequent Costs
Joint Costs
Joint or common costs are those which are incurred before thatstage in manufacture When the product became separated
Subsequent Costs
Subsequent cost or attributable costs are those costs that come after the separation or split off point
paramjit sharma
Apportionment For Joint Products
To determine the unit costs of productsTo help in inventory valuationTo determine PL on each line of ProductsTo determine price of each Products
paramjit sharma
Apportionment (Methods)
Sales Value MethodsPhysical Units MethodsAverage Unit Cost MethodsSurvey Method
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF UNIT PRICESON THE BASIS OF SALES VALUEON THE BASIS OF NET VALUE
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF UNIT PRICES
Joint Costs Rs 9000Products Selling Price App. Cost
(Rs) PU (Rs) Ratio (12:8:4)A 12 4500
B 08 3000
C 04 1500 Joint Costs 9000
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF SSALES
Joint Costs Rs 9000Products S Price S Value App. Cost(Rs)
Rs Ratio (24:48:28
A 12 200 2400 2160 B 08 600 4800 4320C 04 700 2800 2520 10,000 9,000
Prod .Qty Rs
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF NET VALUE (Reverse Cost Method)
Net value =Sales value- (Est. Profit +S & D Cost +After Split off Processing Cost)
paramjit sharma
Apportionment (Methods) Sales Value Methods
ON THE BASIS OF NET VALUE (Reverse Cost Method)
In processing a basic raw materials, three joint productsX Y & Z are produced. The joint expenses of manufacturing areMaterials Rs 10,000,labour Rs 8000,OverheadRs 9000.Subsequent expenses are as follows.
x y z Rs Rs Rs
Materials 2,000 1600 1,800Labour 2,500 1400 1,700Overhead 2,500 1000 1,500
Total 7,000 4,000 5,000Sales Value 42,000 20,000 18,000EST. Profit on sales 5 0% 50% 33.1/2
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF NET VALUE (Reverse Cost Method)
Net value =Sales value- (Est. Profit +S & D Cost +After Split off Processing Cost)
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF UNIT PRICESON THE BASIS OF SALES VALUEON THE BASIS OF NET VALUE
paramjit sharma
Apportionment (Methods)
Sales Value Methods
ON THE BASIS OF UNIT PRICESON THE BASIS OF SALES VALUEON THE BASIS OF NET VALUE
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