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ACC103 Q3

# 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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