A company produces two products, product A and product B. Both products are produced by using similar machines and similar methods. The indirect costs of the company are 45 000 €/year. More information regarding product A and product B:   Product A Product B Produced items  250/year 7000 items/year Labour hours 2h/item 3h/item   Calculate how the indirect costs of the company should be accumulated into two different products, pro

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...
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A company produces two products, product A and product B. Both products are produced by using similar machines and similar methods. The indirect costs of the company are 45 000 €/year.

More information regarding product A and product B:

 

Product A

Product B

Produced items

 250/year

7000 items/year

Labour hours

2h/item

3h/item

 

Calculate how the indirect costs of the company should be accumulated into two different products, product A and product B.

 

Your answer:

 

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