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MGT402 Cost and Management Accounting, GDB # 2, Opening Date January 22, 2016, Closing Date January 26, 2016.

Graded Discussion Board

Cost and Management accounting (mgt402)


Dear Students!

This is to inform that Graded Discussion Board (GDB) No. 02 will be opened on January 22, 2016 for discussion and last date for posting your discussion will be January 26, 2016.


Topic/Area for Discussion

 “Joint Products & By Products”


This Graded Discussion Board will cover Audio/Video lessons # 25 & 26.


Learning Objectives:

  • To understand the concepts of Joint Products and By Products and their accounting treatment




Crescent Industries produced two different products - O and during December 20X5. The company incurred Joint processing cost of Rs. 42,000 at split-off point during the month. This cost was allocated to the products on the basis of their sales values at the split-off point. Both products could be sold either at split-off point or incurred further processing cost. Other relevant information about two products is given as:



“O” (in Rs.)

“P” (in Rs.)

Total (in Rs.)

Sales value at split-off point




Further processing costs




Sales value after further processing





On the basis of above information, answer the followings:


  1. Net monetary advantage/disadvantage received by the company through further processing of Product “O” & “P” beyond the split off point.


  1. Which product would you consider better for further processing and why? Support your answer by giving an appropriate reason (not more than 3 lines).


Important Instructions:


1.      Your discussion must be based on logical facts.

2.      The GDB will remain open for 3 working days/ 72 hours.

3.      Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

4.      Obnoxious or ignoble answer should be strictly avoided.

5.      Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

For Detailed Instructions please see the GDB Announcement

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Replies to This Discussion

koi define kar e ga requirments k bary ma

muje b samjh nahi aa raha k pucha kiya hy?

at sptil off point

Product O

(17000 divided by 45000) x 42000

Product O

(28000 divided by 45000) x 42000

After processing

Product O

(32000 divided by 57000) x 42000

Product P

(25000 divided by 57000) x 42000

ye calcutaion hy .......aab koi batye ga k kis ki processing kanri hy kiss ki nahi........meny with or without dono processing kar di hyn

i think Product P ko processing ki zarort nahi hy.................lakin waja nahi pata

Further processing k bad product O ki value chunky bhar jati hy to ye monetory disadvantge hoga ya phir advantage................?????????? isi tarah product P ki kam ho jati hy to kiya ye advantge my hoga ????????????

Monetory advantage or disadvantage is based on profit received on selling of product

shakeel ahmed aap samjha dain kuch 

mujhe lagta hai processing se phele dono product ki cost allocate karkey  dekhna hai cost se sale compare kr ke ke profit hai ya loss and than processing ke baad cost jo process 1 main aai aur processing ke baad accumulate kr ke dekhna hai ke accumulated cost ko sales se compare kar ke profit aaraha hai ya loss . but i am not 100% sure

read related lecture, it will help you 

which lecture we should read ?


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