File Name: joint product and by product costing .zip
Joint and By Products are complications that can occur within the context of process costing. Joint products are two or more products separated in the course of processing, each having a sufficiently high saleable value to merit recognition as the main product.
A joint cost is a cost that benefits more than one product, while a by-product is a product that is a minor result of a production process and which has minor sales. Joint costing or by-product costing are used when a business has a production process from which final products are split off during a later stage of production. The point at which the business can determine the final product is called the split-off point. There may even be several split-off points; at each one, another product can be clearly identified, and is physically split away from the production process, possibly to be further refined into a finished product. If the company has incurred any manufacturing costs prior to the split-off point, it must designate a method for allocating these costs to the final products.
LO1 Describe a joint process, and explain the difference between a by-product and a main product. LO2 Allocate joint costs. LO3 Explain the factors that are considered in choosing a joint cost allocation method. LO4 Identify the relevant information for deciding whether to process a joint product beyond. LO5 Apply the methods that are used to account for the sale of by-products. LO6 Explain how a sales mix affects joint cost allocations.
This method is applied if the joint products are capable of being expressed in the some unit of measurement. Therefore, the basic of apportionment is the physical volume of units found at the point of separation. Moreover, if any loss arising during processing is also apportioned on the same basis. If the units of measurement of joint products are heterogeneous, this method cannot be applied. This method has the assumption of all the joint products equally desirable and valuable. This method is applied if all the joint products are common and inseparable.
Product costing is the process of recording and allocating expenses, which are incurred in the process of producing and selling a product, to the respective products. It is done to enable the company to valuate the inventory and for various internal and external reporting requirements. Product costing in process industry is typical and challenging due to the simultaneous production of more than one product from common inputs using common initial process. This white paper gives a perspective on product costing in process industry and the SAP features available to enable the same. The initial section of the paper discusses the standard methods of cost apportionment. A typical process industry scenario with a possible costing model is discussed to exemplify the process.
Joint costs are those costs, which are common to the processing of joint-products or by products up to the point of separation. These are the costs of a single process that yields multiple products simultaneously. After the point of separation, the products can be separately identified and post-separation costs can be readily attributed to individual products. Cost common to joint products or by-products before the point of separation of their identity, present a problem of allocation.
Беккер посмотрел. Человек в очках в тонкой металлической оправе стоял внизу, спиной к Беккеру, и смотрел в направлении площади. Беккер прижал лицо к прорези, чтобы лучше видеть. Иди на площадь, взмолился он мысленно. Тень Гиральды падала на площадь, как срубленная гигантская секвойя.
Он всегда поощрял сотрудников к анализу и прояснению всяческих нестыковок в каждодневных делах, какими бы незначительными они ни казались. И вот теперь он требует, чтобы они проигнорировали целый ряд очень странных совпадений. Очевидно, директор что-то скрывает, но Бринкерхоффу платили за то, чтобы он помогал, а не задавал вопросы. Фонтейн давно всем доказал, что близко к сердцу принимает интересы сотрудников.
Materials Direct labor F.Gabrielle R. 21.05.2021 at 09:21
Joint products are two or more products that are generated within a single production process; they cannot be produced separately and incur undifferentiated joint costs.