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    PracticeACCAACCA MA — Management Accounting Practice Exam 3Question 09
    Medium2 marksMultiple Choice
    Cost Accounting TechniquesSyllabus CJoint Products

    ACCA · Question 09 · Cost Accounting Techniques

    Section A

    GreenAcres Farm produces two joint products, Alpha-Crop and Beta-Crop, from a single harvesting process. The joint costs incurred up to the split-off point total $50,000. At the split-off point, 2,000 kg of Alpha-Crop (sales value $20/kg) and 3,000 kg of Beta-Crop (sales value $10/kg) are produced. If joint costs are apportioned based on sales value at the split-off point, what is the joint cost allocated to Beta-Crop?

    Answer options:

    A.

    $30,000

    B.

    $25,000

    C.

    $21,429

    D.

    $28,571

    How to approach this question

    Calculate total sales value for both products. Then find Beta-Crop's proportion of the total sales value and multiply by the joint costs.

    Full Answer

    C.$21,429✓ Correct
    Sales value of Alpha = 2,000 * $20 = $40,000. Sales value of Beta = 3,000 * $10 = $30,000. Total sales value = $70,000. Beta's share of joint costs = ($30,000 / $70,000) * $50,000 = $21,429.

    Common mistakes

    Apportioning based on physical units (kg) instead of sales value.
    Question 08All questionsQuestion 10

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