Joint and by product costing assignment help

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It is best to take experts help when it comes to complete an assignment on joint and by product costing. It is a complex subject and understanding the concepts this subject might be difficult for students. As such, student may need professional joint and by product costing assignment help.
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They have knowledge of the subject and can guide and prepare your assignment in simplest way possible. So that it is easily understood by the reader or one looking for it. Our online service for joint and by product costing assignment help is available to USA, UK, Canada, UAE and Australia. Let us first try to understand what Joint and by product costing means.

Joint and by product costing

Joint product: When two or more products are produced simultaneously by the same process each having a high saleable value, it is known as joint product. They all are main product and cannot be produced separately. It becomes separate and identifiable at the split-off-point. Joint costs are the total cost of raw material, labour and overhead charges spent up to the initial split-off-point. Joint cost allocation is made to meet the needs of financial reporting (GAAP) and for income measurement and inventory valuation.
By product: It is a secondary product produced along with the main product and possesses some saleable value. A by product has less commercial value and requires further processing before sale. The commercial value of the product classifies it as joint or by product. For example, in dairy industry, buttermilk is a by product which is produced along with the main product butter and cheese.


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Methods of accounting for Joint product costing

Allotment of joint cost among the joint product is essential to understand the share of each product correctly. Ascertainment of share of cost is essential for pricing the products, valuing the closing inventory and ascertains the profit or loss on sale of every product. Below are the methods used for apportioning the joint costs between the joint products
1) Physical unit method
2) Average unit cost method
3) Survey method
4) Standard cost method
5) Contribution margin method
6) Market value method

Methods of accounting for by product costing

In order to determine the cost and profit of main product, the cost of by product should be dealt by cost accounting. Various methods are used to determine the cost and sales value of a by product. They are classified as sales value and cost method.

Sales value method includes

1) Other income method
2) Total sale less total cost method
3) Total cost less sales value of by product
4) Total cost less net value of by product
5) Total cost less net yield of by product
6) Reverse cost method

Cost method includes

1) Replacement or opportunity cost method
2) Standard cost method
3) Joint cost proration
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