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Question - A firm operates a process, the details of which for the period were as follows. There was no opening work-in-progress. During the period 8,250 units were received from the previous process at a value of $453,750, labour and overheads were $350,060 and material introduced was $24,750. At the end of the period, the closing work-in-progress was 1,600 units, which were 100% complete in respect of materials, and 60% complete in respect of labour and overheads. The balance of units were transferred to finished goods.
Required -
1. Calculate the number of equivalent units produced.
2. Calculate the cost per equivalent unit.
3. Prepare the process account
4. Distinguish between joint products, and by-products, and briefly explain the difference, in accounting treatment between them.
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