{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Joint Product

# Joint Product - J oint P roduct Splitoff point t his is the...

This preview shows pages 1–3. Sign up to view the full content.

Joint Product Splitoff point : t his is the point at which the two products stop sharing the same process and become different, identifiable products. Joint costs : those costs incurred prior to the splitoff point Separable costs : incurred after the splitoff point. Physical-unit Method Quantity of Product A X Total Joint Costs = Amount allocated to the Joint Product A Total Quantity of all Joint Products = Sales Value at Splitoff Method Joint costs are allocated based on the actual number of units of each of the products produced Sales Value of Product A X Total Joint Costs = Amount allocated to the Joint Product A Total Sales Value of all Joint Products = Estimated Net Realizable Value (NRV) Method Used for the product or products that will be processed further, consist of 2 steps.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Step I Sales price of Product A produced that will be sold in the future - Separable costs that are incurred after the splitoff point = Estimated Net Realizable Value ----------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------- Step II Estimated Net Realizable Value of Product A
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

Joint Product - J oint P roduct Splitoff point t his is the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online