Post by rakhifizry33 on May 16, 2024 5:20:21 GMT
That use this method believe that all products are produced using the same process. So all products should receive a proportional share of the total joint production costs based on the number of units produced. Also read Mass Production System Definition Stages Characteristics Advantages and Disadvantages Weighted average method survey In many industries it is felt that quantitative methods do not provide a satisfactory answer to the problem of joint cost sharing. Therefore factors such as unit size production difficulty production time.
Differences in the type of labor used and the Paraguay Phone Number amount of materials used are taken into consideration for joint cost allocation. Each type of finished goods production is multiplied by a weighting factor to divide the total combined costs into each unit. The assessment is in the form of a nominal value or percentage for each production which is adjusted to the proportion of the assessment. Example Using the figures from the previous example the following allocation points have been assigned to the four products as follows Product.
A points Product B points Product C . points Product D points Required Calculate the joint production cost allocation using the weighted average method. Answer Allocation of joint production costs will produce the following values Cost per unit Total combined production costs Total weighted production units Cost per unit Product Units Allocation Points Weighted Units Units x Allocation Points Cost per Unit Combined Production Cost Weighted Unit x Cost per Unit A B C . D Total Also read Production Factors Definition Types Ownership and Examples in Everyday.
Differences in the type of labor used and the Paraguay Phone Number amount of materials used are taken into consideration for joint cost allocation. Each type of finished goods production is multiplied by a weighting factor to divide the total combined costs into each unit. The assessment is in the form of a nominal value or percentage for each production which is adjusted to the proportion of the assessment. Example Using the figures from the previous example the following allocation points have been assigned to the four products as follows Product.
A points Product B points Product C . points Product D points Required Calculate the joint production cost allocation using the weighted average method. Answer Allocation of joint production costs will produce the following values Cost per unit Total combined production costs Total weighted production units Cost per unit Product Units Allocation Points Weighted Units Units x Allocation Points Cost per Unit Combined Production Cost Weighted Unit x Cost per Unit A B C . D Total Also read Production Factors Definition Types Ownership and Examples in Everyday.