Solution-Allocate the joint cost to all three products

Allocate the joint cost to all three products

Assignment Help Cost Accounting

Reference no: EM132561595

SEAJOHN Oil Refinery processes three products named as DIESEL, PETROL and KEROSENE OIL by using raw material which has a joint cost of $21,600. Production process for the month of July 2017 provides following information at the split-off point :

PRODUCT LITRES SALES PRICE

(per litre)

Diesel 6,000 $2.20

Petrol 8,000 $1.25

Kerosene Oil 10,000 $1.28

As per the recommendation of experts and production managers, each product is weighted as follows :

PRODUCT PER LITRE WEIGHTING

Diesel 0.6

Petrol 0.4

Kerosene Oil 0.4

Question 1: You are required to allocate the joint cost to all three products using weighted average method.

Reference no: EM132561595

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Allocate the joint cost to all three products

Reference no: EM132561595

Reference no: EM132561595

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