Allocate joint cost to by product with reversal cost method

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Reference no: EM132806981

PT Smart produces 2 main products, namely Alpha and Beta and 1 by-product, Gama. All products are produced together in department I. In order to be sold to the market, Alfa is processed in department II and Beta in department III. Gama is processed further in department IV. The following are 2017 data as follows

Cost at I department consist of Direct Material 10.000 kg @ Rp 5.600; Direct Labor 5.000 jkl @Rp 4.000 and FOH : 120% from Direct Labor Cost Cost at II department Rp 46.800.000
Cost at III department Rp 21.200.000
Cost at IV department Rp 8.800.000

Gama Product is sold with operating income Rp 1.000 per unit and operating expenses Rp 680 per unit. Sales price per unit Rp 4.000, unit produced 10.000 unit

Alfa product is produced 15.500 unit with market price per unit Rp 12.500
Beta product is produced 16.000 unit with market price per unit Rp 16.000

Problem 1: Allocate joint cost to by product with reversal cost method and to joint product with market value method

Problem 2: Calculate production cost per unit for each products

Reference no: EM132806981

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