Skip to content

ACCA Applied Knowledge · Management Accounting · Cost accounting methods

A process produces two joint products, X and Y, with total joint costs of $90,000. Output is 6,000 kg of X and 3,000 kg of Y. Joint costs are apportioned on a physical units basis. What joint cost is allocated to Y?

Y receives $30,000. Under the physical units method joint costs follow output volume, and Y is 3,000 of 9,000 kg total, one third, so one third of the $90,000 joint cost is allocated to it.

  1. A$30,000Correct
  2. B$45,000
  3. C$60,000
  4. D$36,000

Explanation

Total units are 9,000 kg. Y share is 3,000/9,000 = one third, so 90,000 x 1/3 = $30,000. Option $60,000 is X's share, which results from using the wrong product.

Did you get it right without looking?

One question tells you little. A timed set on Cost accounting methods shows your real accuracy, how long you take and where you lose marks.

Practise Cost accounting methodsFree diagnostic mock

More Cost accounting methods questions