Two products (W and X) are created from a joint process. Both products can be sold immediately after split-off. There are no opening inventories or work in progress. The following information is available for last period: Total joint production costs $776,160 Product Production units Sales units Selling price per unit W 12,000 10,000 $10 X 10,000 8,000 $12 Using the sales value method of apportioning joint production costs, what was the value of the closing inventory of product X for last period?
A、$310,464
B、$388,080
C、$155,232
D、$77,616
A、$310,464
B、$388,080
C、$155,232
D、$77,616
【参考答案及解析】
Sales value of production W (12,000 units x $10)$120,000 X (10,000 units x $12)$120,000 Joint production costs will be apportioned equally between the two products as the sales value of production is the same for each product.Joint production costs allocated to X = $776,160/2 = $388,080Value of closing inventory = 100000 x $388,080 = $77,616Alternative costing principles
Sales value of production W (12,000 units x $10)$120,000 X (10,000 units x $12)$120,000 Joint production costs will be apportioned equally between the two products as the sales value of production is the same for each product.Joint production costs allocated to X = $776,160/2 = $388,080Value of closing inventory = 100000 x $388,080 = $77,616Alternative costing principles