Question

Q 2. Khaleel Compagny produces three products A, B and C. During the year the joint costs of processing the coffee were SAR270,000. Production and sales value information were as follows:

                                             Sales Value

Product               Units         at Split-Off        Separable Costs         Selling Price

A                       300,000      SAR9 per unit      SAR5.00 per unit       SAR32 per unit

B                       200,000      SAR8 per unit      SAR3.00 per unit       SAR30 per unit

C                       400,000      SAR7 per unit      SAR2.00 per unit        SAR20 per unit

           Chose one method to allocate joint costs and allocate the joint costs.  

Answer 1