for commerce students

1. WELCOME

2. ACCOUNTING
FOR MANAGERS

3.  Joint products may defined as
distinctly different major
products that are inevitably
produced simultaneously from
common input or by common
processing.

4. 1. Joint product are produced from the
same basic raw materials.
2. They are comparatively of equal
importance.
3. They are produced from a common
process.
4. No product can be called as a major
product.
5. The sales value of each of the joint
products are relatively high.

5.  ACCOUNTING FOR JOINT PRODUCT COST
 Physical quantity method
 Relative market or sale value method
 Average unit cost method
 Weighted average cost method

6. By-products may be defined as a
secondary product obtained during
the course of manufacture having
relatively small importance as
compared with that of the chief
product or products.

7.  They are produced incident to the main
product.
 Their value is very low compared to that
of major product.
 They emerge from the same basic raw
materials
 They are produced from a common
process

8. a) Sales of by-product as other income
b) Sales of by-product as a reduction in the cost
of joint products
c) Treating by-products having no cost at the
time of separation but charging them with all
costs after separation
d) Recording cost of by-product
e) Replacement cost method
f) Market Value

9. Joint product By-product
1. They are 1. Their value is very low
comparatively of equal compared to major
importance. product.
2. There is no product to 2. They will always be
be designated as main main product or
product. products.
3. Each joint product is a 3. By-products are
major product line incidental products
with negligible value.