Post by rakhifizry33 on May 16, 2024 5:10:39 GMT
In factors such as material quality marketing and selling price are also considered. Overall both qualitative and quantitative indicators are considered to obtain the following formula Joint Cost Total Cost Total weighted units Banner kledo Joint Cost Allocation Method and Calculation Examples Allocation methods and examples of joint cost calculations There are several methods used to allocate joint production costs. These methods are Quantitative methods or physical units methods are based on physical units of measurement such as weight Weighted average method.
This method is based on predetermined quality Paraguay Phone Number standards or production indices Market value method or sales value method This method is based on the relative market value of each product Quantitative method physical units This method is carried out by dividing all total production costs by the total number of product units produced. produced are measured in the same units and do not differ substantially this method is effective because it is simple and easy to apply. However if the units produced are not measured in the same units then this method cannot be applied.
Example Combined products A B C and D are produced at a total combined production cost of . The number of products produced is as follows A units B units C units D units Required Calculate the allocation of joint production costs using quantitative methods Answer Cost Per Unit Total combined product cost Number of units produced Product Units Allocation of Joint Production Costs Rp A x B x C x D x Total The allocation of joint production costs is calculated as Total production units x production costs per unit Companies.
This method is based on predetermined quality Paraguay Phone Number standards or production indices Market value method or sales value method This method is based on the relative market value of each product Quantitative method physical units This method is carried out by dividing all total production costs by the total number of product units produced. produced are measured in the same units and do not differ substantially this method is effective because it is simple and easy to apply. However if the units produced are not measured in the same units then this method cannot be applied.
Example Combined products A B C and D are produced at a total combined production cost of . The number of products produced is as follows A units B units C units D units Required Calculate the allocation of joint production costs using quantitative methods Answer Cost Per Unit Total combined product cost Number of units produced Product Units Allocation of Joint Production Costs Rp A x B x C x D x Total The allocation of joint production costs is calculated as Total production units x production costs per unit Companies.