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ACC103 Q3 - 3(a Physical-Units Method Joint Cost Joint Unit...

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3(a) Physical-Units Method Joint Cost Joint Products Unit at Split- off Point Relative Proportion Allocation of Joint Cost $7,750,000 Goldex 300,000 Holdex 250,000 Total 550,000 1 $7,750,000.00 (i) Goldex Total Cost = $4,227,272.73 + $3,000,000 = $7,227,272.73 Cost of Ending Inventories = x 80,000 units = $1,927,272.73 (ii) Holdex Total Cost = $3,522,727.27 + $1,500,000 = $5,022,727.27 Cost of Ending Inventories = x 70,000 units = $1,406,363.64 3(b) Net Realizable Value Method Joint Cost Joint Products Sales Value of Final Product Separable Cost of Processing Net Realizable Value Relative Proportion Allocation of Joint Cost $7,750,000 Goldex $300,000x $50 =$15,000,000 $3,000,000 $15,000,000 - $3,000,000 = $12,000,000 Holdex $250,000x $38 = $9,500,000 $1,500,000 $9,500,000 - $1,500,000 = $8,000,000 Total $24,500,000 $20,000,000 1 $7,750,000.00 (i) Goldex Total Cost = $4,650,000.00 + $3,000,000.00 = $7,650,000.00 Cost of Ending Inventories = x 80,000 units = $2,040,000.00 (ii) Holdex Total Cost = $3,100,000.00 + $1,500,000 = $4,600,000.00 Cost of Ending Inventories = x 70,000 units = $1,288,000.00
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3(c) Constant Gross Margin Method Goldex Holdex Total Sales Value $15,000,000 1 $9,500,000 2 $24,500,000 Joint Costs $4,500,000 6 $3,250,000 8 $7,750,000 Additional Costs
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