Technology Manufacturing Corporation produces three types of semiconductors from a joint process. Joint costs for February 2019 amounted to P500,000. Other information extracted from the records are shown below: Model X3A-01 Model X3A-02 Model X3A-03 Quantities 3,000 4,000 3,000 Cost after split-off P100,000 P150,000 P250,000 Ultimate market value P300,000 P550,000 P450,000 Using the market value method of joint costs allocation, determine the production costs of Model X3A-01, Model X3A-02, and Model X3A-03, respectively. Group of answer choices P250,000; P350,000; and P400,000 P200,000; P300,000; and P500,000 P275,000; P400,000; and P450,000 P225,000; P400,000; and P375,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Technology Manufacturing Corporation produces three types of semiconductors from a joint process. Joint costs for February 2019 amounted to P500,000. Other information extracted from the records are shown below:
|
|
Model X3A-01 |
Model X3A-02 |
Model X3A-03 |
|
Quantities |
3,000 |
4,000 |
3,000 |
|
Cost after split-off |
P100,000 |
P150,000 |
P250,000 |
|
Ultimate market value |
P300,000 |
P550,000 |
P450,000 |
Using the market value method of joint costs allocation, determine the production costs of Model X3A-01, Model X3A-02, and Model X3A-03, respectively.
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