Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 15 Sep 2017 My Price 7.00

JB Ltd

JB Ltd. produces four joint products, A, B, C and D, all of which emerge from the processing of one raw material. The following are the relevant data:

Production for the period:

Joint Product

Number of Units

Selling Price per Unit Rs.

A

500

18.00

B

900

8.00

C

400

4.00

D

200

11.00

The company budgets for a profit of 10% on sales value. The other estimated costs are:

Carriage inwards: Rs.1, 000

Direct wages: Rs.3, 000

Manufacturing overheads: Rs.2, 000

Administration overheads: 10% of the sales value

You are required to,

I] Calculate the maximum price that may be paid for the raw material

II] Prepare a comprehensive cost statement for each of the products allocating the materials and other costs based up on: Number of units and Sales value.

Answers

Maurice Tutor
(5)
Status NEW Posted 15 Sep 2017 09:09 AM My Price 7.00

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