Allocating Joint Product Cost
Joint Account Cost is the Costs of two or more products that are manufactured from the same manufacturing process that have no way to differentiate the cost of producing each Item. Costs are then distributed up based on the selling price of each individual product.
Weighted Average Method–Allocating Joint Product Cost: Learning Objectives: Explain the procedure of allocating joint product cost when weighted average method is used. many industries, the previously described methods do not give a satisfactory answer to the joint cost apportionment problem. For this reason, weight
Average Unit Cost Method–Allocating Joint Product Cost: Learning Objectives: Explain the use of average unit cost method in joint product cost allocation. Average unit cost method attempts to apportion total joint production cost to the various products on the basis of a predetermined standard