Let us calculate NRV first to allocate the joint costs in ratio of NRV | ||||||
Calculation of NRV | ||||||
Particulars | M | N | T | |||
Total Final Sales Value | 195000 | 175000 | 32000 | |||
Less: Total Seperable Costs | 10000 | 15900 | 6100 | |||
NRV | 185000 | 159100 | 25900 | |||
Allocation of Joint Costs in the ratio of NRV | ||||||
Particulars | M | N | T | Total | ||
NRV | 185000 | 159100 | 25900 | 370000 | ||
Alloaction of Joint Costs | 77500 | 66650 | 10850 | 155000 | ||
Calculation | 155000*(185000/370000) | 155000*(159100/370000) | 155000*(25900/370000) | |||
No of Units is irrelevant as we have allocated based on Total NRV but not on NRV per unit. | ||||||
Happy Learning and All the Best |
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