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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

 

DISCUSSION SCENARIO:

 

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

28,000

17,000

45,000

Further processing costs

8,000

6,000

14,000

Sales value after further processing

32,000

25,000

57,000

 

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

there is no need to upload the calculations. These are just to understand the concept and to reply the answers of the GDB.

Product O be sold at split off point and product P may be put through second process.

here the matter is further processing cost which  14000(8000+6000)  here u have to find benefit or not benefit.. by allocating through split off.

So which product we will consider better ?
This will be solved by with the examples of lesson 26

 from where we get the 3000, 42000 and 46000? shakeel ahmed?

Joint processing cost = Rs 42000
sales value = Rs 46000
Total profit at split off pt = Rs 3000

Classification of by product
By product can be classified into two categories:
1. Requiring no further process, for example Bran
2. Requiring further processing, for example Hides

COST PRICE   SALE PRICE

42000               45000

?  53200            57000

MONETARY ADVANTAGE

AT SPLIT OFF POINT 45000 -42000=3000

AFTER FURTHER COSTING  57000-53200= 3800

SO  800 IS ADVANTAGE FOR FURTHER PROCESSING

ab ye kya hai

ye 53200 kesy aaya plz tell me?

han g ye kahan sy aaya?

yeh GDB to gai koi solution ni mila 

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