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    Cost and Management Accounting: Presented By: Mayank Goel

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    Mayank Goel
    The document discusses the distribution of joint overheads between multiple products when clear information is not provided. It states that factory overhead will be distributed based on direct wages, while office overhead and selling/distribution overhead will be distributed based on factory cost. It then provides a numerical example where a manufacturer produces stools, chairs, and tables, and the total factory overhead is $600,000. The example shows how to calculate the work cost of each product by assuming equivalencies between products for overhead allocation purposes.

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    Cost and Management Accounting: Presented By: Mayank Goel

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    Mayank Goel
    77 views5 pages
    The document discusses the distribution of joint overheads between multiple products when clear information is not provided. It states that factory overhead will be distributed based on direct wages, while office overhead and selling/distribution overhead will be distributed based on factory cost. It then provides a numerical example where a manufacturer produces stools, chairs, and tables, and the total factory overhead is $600,000. The example shows how to calculate the work cost of each product by assuming equivalencies between products for overhead allocation purposes.

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    Cost

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    The document discusses the distribution of joint overheads between multiple products when clear information is not provided. It states that factory overhead will be distributed based on direct wages, while office overhead and selling/distribution overhead will be distributed based on factory cost. It then provides a numerical example where a manufacturer produces stools, chairs, and tables, and the total factory overhead is $600,000. The example shows how to calculate the work cost of each product by assuming equivalencies between products for overhead allocation purposes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    77 views5 pages

    Cost and Management Accounting: Presented By: Mayank Goel

    Uploaded by

    Mayank Goel
    The document discusses the distribution of joint overheads between multiple products when clear information is not provided. It states that factory overhead will be distributed based on direct wages, while office overhead and selling/distribution overhead will be distributed based on factory cost. It then provides a numerical example where a manufacturer produces stools, chairs, and tables, and the total factory overhead is $600,000. The example shows how to calculate the work cost of each product by assuming equivalencies between products for overhead allocation purposes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    Cost and Management Accounting

    Presentation On: Cost Sheet (Distribution Of Joint Overheads)

    Presented By: Mayank Goel

    Distribution Of Joint Overheads


    In The Joint Amount of overheads is given for
    two or more products and clear information about distribution of joint overheads is given, then the distribution of joint overheads will be done accordingly. On the other hand , if no clear information is given then the factory overhead will be distributed on the basis of direct wages while the office overhead and selling and distribution overheads will be distributed on the basis of factory cost.

    Numerical Example
    Mr. Govind Manufacturers Stools, Chairs, and Tables. The Materials
    and wage cost are separated as follows. Materials ` 36 60 440

    Stool Chair Table

    Wages ` 48 40 120

    His Total factory overheads in the year 2006 were ` 6,00,000. You are asked to determine the works cost of each type of furniture after assuming that.

    One table is equivalent to four stools. Two chairs are equivalent to one table
    For the purpose of overhead allocation. The production during the year was : Stool_ 6,000 Chairs_ 3,000 Tables _600.

    Thank You...
    From: Mayank

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