cost allocation: joint products and byproducts

PPTX 37 sahifa 590,1 KB Bepul yuklash

37 sahifa

FaylHub.uz

Telegram orqali yuklab olish

Hajm 590,1 KB

Fayl turi PPTX

Sahifalar 37

Yangilangan Dek 2025

Sahifa ko'rinishi (5 sahifa)

Pastga aylantiring 👇

1 / 37

chapter 16 chapter 5 cost allocation: joint products and byproducts 1 learning objectives identify the split-off point in a joint-cost situation and distinguish joint products from byproducts explain why joint costs are allocated to individual products allocate joint costs using the four methods selling at split off point or further processing decision in this chapter, we’ll study the allocation of costs for joint products and byproducts. here are the first 4 of our 6 learning objectives. identify the split-off point in a joint-cost situation and distinguish joint products from byproducts. explain why joint costs are allocated to individual products allocate joint costs using four methods identify situations where the sales value at splitoff method is preferred when allocating joint costs 2 joint cost terminology joint costs—costs of a single production process that yields multiple products simultaneously split-off point—the place in a joint production process where two or more products become …

2 / 37

ntracting insurance settlements required for rate and price regulations litigation 6 by product cost accounting accounting for cost of by-products differs from accounting for cost of main products. by-products do not receive any joint cost allocation( their product cost is zero) they are reported at nrv( sales less selling cost) in one of the following two options: treat by-product net realizable value as other revenue. deduct by-product’s net realizable value from joint costs of main products so as to reduce the process costs . joint cost allocation methods there are four methods of joint cost allocation 1. physical measure method —allocate joint cost using physical attributes of the products, such as pounds, gallons, barrels, and so on market-based methods —allocate joint cost using market-derived data (birr): sales value at split-off net realizable value (nrv) constant gross-margin percentage 8 illustration- example assume the following data of 2010 for shola milk share …

3 / 37

iquid skim to cream (0.25*400,000) br100,000 to liquid skim(.75 *400,000) br. 300,000 cost per unit cream birr 100,000/25,000g = br4/g liquid skim birr 300,000/75,000g = br 4/g shola milk s.c income statement for the yearended sene30,2010 product cream liquid skim total sales (20,000*8,30,000*4) br 160,000 br. 120,000 br 280,000 cgs( 20,000*4,30,000*4) 80,000 120,000 200,000 gross profit 80,000 0 80,0000 gp %( gp/sales) 50% 0 2. sales value at split-off method uses the sales value of the entire production of the accounting period to calculate allocation percentage product cream liquid skim total production in gallons 25,000 75,000 100,000 unit selling price 8 4 sales of total production br200,000 br300,000 br500,0000 ratio 40% 60% 15 joint cost allocation joint cost 400,000 allocation cream liquid skim to cream (0.4*400,000) br160,000 to liquid skim(.6 *400,000) br. 240,000 cost per unit cream birr 160,000/25,000g = br6.4/g liquid skim birr 240,000/75,000g = br 3.2/g shola milk …

4 / 37

ss : separable cost 280,000 520,000 800,000 nrv 220,000 580,000 800,0000 nrv ratio 27.5% 72.5% 22 joint cost allocation joint cost 400,000 allocation butter cream condensed milk to better cream (0.275*400,000) br110,000 to condensed milk(.725*400,000) br. 290,000 cost per unit ( joint cost + separable cost/ production) butter cream birr 110,000+280,000/20,000g = br19.5/g condensed milk birr 290,000+520,000/50,000g = br 16.2/g shola milk s.c income statement for the year ended sene30,2010 product butter cream condensed milk total sales (12,000*25,45,000*22) br 300,000 br. 990,000 br 1,290,000 cgs( 12,000*19.5,45,000*16.2) 234,000 729,000 963,000 gross profit 66,000 261,000 327,000 gp %( gp/sales) 22% 26.36% 25.34% 4. constant gross margin method allocates joint costs to joint products in a way that the overall gross-margin percentage is identical for the individual products. joint costs are calculated as a residual amount. total product cost(jc+sc) = total production sales – total production gp thus, joint cost(jc) = product cost …

5 / 37

00*25,45,000*22) br 300,000 br. 990,000 br 1,290,000 cgs( 12,000*18.75,45,000*16.5) 225,000 742,500 967,500 gross profit 75,000 247,500 322,500 gp %( gp/sales) 25% 25% 25% method selection if selling price at splitoff is available, use the sales value at splitoff method. if selling price at splitoff is not available, use the nrv method. if simplicity is the primary consideration, physical-measures method or the constant gross-margin method could be used. despite this, some firms choose not to allocate joint costs at all. 30 sell-or-process further decisions in sell-or-process further decisions, joint costs are irrelevant. joint products have been produced, and a prospective decision must be made: to sell immediately or process further and sell later. joint costs are sunk costs. don’t assume all separable costs in joint-cost allocations are always incremental costs. some separable costs may be fixed costs. separable costs need to be evaluated for relevance individually . 31 sell-or-process further flowchart …

Ko'proq o'qimoqchimisiz?

Barcha 37 sahifani Telegram orqali bepul yuklab oling.

To'liq faylni yuklab olish

"cost allocation: joint products and byproducts" haqida

chapter 16 chapter 5 cost allocation: joint products and byproducts 1 learning objectives identify the split-off point in a joint-cost situation and distinguish joint products from byproducts explain why joint costs are allocated to individual products allocate joint costs using the four methods selling at split off point or further processing decision in this chapter, we’ll study the allocation of costs for joint products and byproducts. here are the first 4 of our 6 learning objectives. identify the split-off point in a joint-cost situation and distinguish joint products from byproducts. explain why joint costs are allocated to individual products allocate joint costs using four methods identify situations where the sales value at splitoff method is preferred when allocating joint costs …

Bu fayl PPTX formatida 37 sahifadan iborat (590,1 KB). "cost allocation: joint products and byproducts"ni yuklab olish uchun chap tomondagi Telegram tugmasini bosing.

Teglar: cost allocation: joint products… PPTX 37 sahifa Bepul yuklash Telegram