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    Project Report ON: (Joint Product)

    Uploaded by

    Poojan Karia
    This document is a project report on joint products submitted by Raj Parekh for their SYBCom course. It includes an introduction defining joint products as two or more outputs from a single production process that use common inputs. The objectives are listed as correctly allocating costs and determining profitability of joint products. Key features explained are that joint products use identical inputs and share processes until splitting off. Cost accounting methods for joint products include average unit cost, physical units, and survey methods to allocate shared costs prior to separation. The report concludes by differentiating joint products from by-products.

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    Project Report ON: (Joint Product)

    Uploaded by

    Poojan Karia
    113 views12 pages
    This document is a project report on joint products submitted by Raj Parekh for their SYBCom course. It includes an introduction defining joint products as two or more outputs from a single production process that use common inputs. The objectives are listed as correctly allocating costs and determining profitability of joint products. Key features explained are that joint products use identical inputs and share processes until splitting off. Cost accounting methods for joint products include average unit cost, physical units, and survey methods to allocate shared costs prior to separation. The report concludes by differentiating joint products from by-products.

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    COST ACCOUNTING

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    This document is a project report on joint products submitted by Raj Parekh for their SYBCom course. It includes an introduction defining joint products as two or more outputs from a single production process that use common inputs. The objectives are listed as correctly allocating costs and determining profitability of joint products. Key features explained are that joint products use identical inputs and share processes until splitting off. Cost accounting methods for joint products include average unit cost, physical units, and survey methods to allocate shared costs prior to separation. The report concludes by differentiating joint products from by-products.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    113 views12 pages

    Project Report ON: (Joint Product)

    Uploaded by

    Poojan Karia
    This document is a project report on joint products submitted by Raj Parekh for their SYBCom course. It includes an introduction defining joint products as two or more outputs from a single production process that use common inputs. The objectives are listed as correctly allocating costs and determining profitability of joint products. Key features explained are that joint products use identical inputs and share processes until splitting off. Cost accounting methods for joint products include average unit cost, physical units, and survey methods to allocate shared costs prior to separation. The report concludes by differentiating joint products from by-products.

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    PROJECT REPORT

    ON

    [JOINT PRODUCT]

    IN THE COURSE

    (SY . BCOM)

    SUBMITTED BY

    (RAJ PAREKH)

    ROLL NO - 097

    SYBCom – COST ACCOUNTING

    (SEMESTER VI)

    UNDER THE GUIDANCE OF

    (Rajkumar sir)

    ACADEMIC YEAR

    2021 - 2022
    CERTIFICATE 

    This is to certify that Mr. RAJ VASANT PAREKH. , roll number 097 of Second Year B.Com Semester
    VI (2021 - 2022) has successfully completed the Project on JOINT PRODUCT as per the guidelines of
    KES’ Shroff College of Arts and Commerce, Kandivali(W), Mumbai-400067.

    • Teacher In-charge Principal

    • Name & Signature Dr. L. BHUSHAN


    INTRODUCTION
    Joint products are two or more outputs other than by-products, that are
    generated from a single production process that uses common inputs. In
    cost accounting, all of the outputs of a single process are not joint
    products, only those that have significant economic value are considered
    joint products.
    Any outputs having insignificant economic value and which are not
    primarily intended to be manufactured are called by-products. This
    differentiation is needed because of difference in accounting between by-
    products and joint products. Usually, all the costs incurred on a joint
    production process are allocated to the joint products whereas no costs are
    typically allocated to any by-products.
    According to T. Lang, Joint products means “Two-or more products
    separated in the course of the same processing operation, usually requiring
    further processing, each product being in such proportion that no single
    product can be designated as major product”.
    In short, we can say, when two or more products of equal importance are
    simultaneously produced, then they are known as joint products
    Few examples of Joint Product:
    • Inoil industry kerosene, gasoline, fuel oil, lubricants etc. are all produced
    from the same product, crude petroleum.
    • Production of butter, cheese and cream from milk.
    • Different grades of wood obtained from a same kind of tree.
    OBJECTIVES
    • Correct collection, compilation and clsification of process costs.
    • The profit or loss of joint products manufacture is determined.
    • The method or pattern of production may be determined.
    • Fixing most profitable product mix may increase the profit.
    • The relationship between the cost and profit can be studied to fix the price of
    joint products.
    • The effect of increase or decrease in cost is to be find out due to increase or
    decrease in the output of joint products.
    • The profitability in selling of joint products and by-products can be determined.
    • The volume of profit may also be maximized with the help of marginal
    contribution analysis.
    FEATURES
    • Joint products are produced jointly from the same process and they
    cannot be produced separately.
    • Joint products are produced using identical raw materials and common
    direct labour.
    • These products pass through the same process up to the separate point.
    • After the splitting off the joint products, they required further
    processing.
    • All the joint product are of equal economic importance and none of
    them can be considered as major product.
    • Joint cost:
    All the cost incurred before the split off point is known as joint costs.
    • Further processing or sub-sequence cost:
    After the split off point joint products required additional processing
    cost of every production that is known as further processing cost.
    • Accounting for Joint Product:
    Accounting for joint products includes the distribution of the joint cost to each of
    the joint products. The joint cost is the total cost that is incurred before the split off
    point. After the split off point, the products are separated into two or more and
    subsequence costs begin. If joints costs are not properties and reasonably
    distributed to different joint products, the cost of the joint products will not be
    reasonable and their will not show the real valuation of inventory, pricing of
    product and profit or loss on sale of different products.
    Apportionment of joint cost
    • Following methods are commonly used for apportionment of joint costs
    that takes place up to the point of separation.
    • • Average unit cost method
    • • Physical unit method
    • • Survey method
    • • Contributions margin ration method
    • • Market value method
    • Average unit cost method Under this method averages unit
    cost is ascertained by divided joint cost by units of joint
    products. After ascertaining the average units cost. The joint
    cost of each product is calculated by multiplying thee
    average units cost and the respective units of the products.
    This method can be applied where processes are common
    and in separate for the joint products and where the
    resultant products can be experienced is same common unit.
    • Average unit cost = total joint cost/ total output units
    • Physical unit method
    Under this method, joint costs are allocated to joint products on the basis of the
    relative weight, volume ot other physical measure. This method is not suitable
    where one product is gas and another product is liquid. This method pre-supposes
    that each joint product to equally valuable which will be rarely possible in practical
    loss is borne by the joint products in the ration of their output weight.
    • Survey method
    In this method, joint products are ranked according to their importance. All the
    major factor such as volume, selling price, technical side, marketing process etc.
    which affect the cost are ascertained by means of extensive survey. Point value or
    percentages are given to each product according to their importance. Joint costs
    are apportioned on the basis of total points. Generally, these points or rations are
    reversed from time to time depending upon the factors affecting production and
    sales.
    DIFFERECE BETWEEN BY AND JOINT
    PRODUCTS
    THANK YOU

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