1. three joint products are manufactured in a common process, which consists of two consecutive
stages. output from process 1 is transferred to process 2, and output from process 2 consists of the
three joint products, x, y and z. all joint products are sold as soon as they are produced.
data for period 2 of 2016 are as follows.
process 1
process 2
opening and closing inventory
none
none
direct material (30,000 units at $2 per unit) $60,000
conversion costs
$76,500
$226,200
normal loss
10% of input
10% of input
scrap value of normal loss
$0.50 per unit $2 per unit
output
26,000 units
10,000 units of x
7,000 units of y
6,000 units of z
selling prices are $18 per unit of x, $20 per unit of y and $30 per unit of z.
a. prepare the process 1 account.
b. prepare the process 2 account using the sales value method of apportionment.
c. prepare the process 2 account using the units basis of apportionment.