Nelson SA Obtains Two Products and a By-Product from Its Production

question 30

Essay

Nelson SA. obtains two products and a by-product from its production process. By-product revenues are treated as other income and a noncost approach is used to assign costs to them. During the period, 1,200 units were processed at a cost of £12,000 for materials and conversion costs, resulting in the following: Required:
a.
Account for all costs using a physical basis for allocation.
b.
Account for all costs using net realizable value as the basis for allocation.
c.
Account for all costs using final sales value as the basis for allocation.
d.
How much joint costs should be allocated to the by-product?

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Definitions:

Procedural Self

Patterns of behavior that are characteristic of an individual.

Declarative Self

The aspect of an individual's self-concept that consists of factual information about the self, such as traits, preferences, and experiences.

Self-Esteem

Self-esteem is an individual's overall subjective evaluation of their own worth.

Self-Concept

An individual's perception of themselves, including beliefs about one's capabilities, appearance, and personality.