Harga Pokok Produk Bersama Dan Produk Sampingan
PERTEMUAN XIV
KEMAMPUAN AKHIR YANG DIHARAPKAN
Mahasiswa dapat menghitung dan
menginterpretasikan harga pokok produk bersama dan perlakuan akuntansi terhadap produk bersama
Mahasiswa dapat menghitung dan
menginterpretasikan harga pokok produk sampingan, perlakuan akuntansi terhadap dan produk sampingan
Learning Objective 1
Learning Objective 1
Joint-Cost Basics (E.g. 1)
Joint-Cost Basics (E.g. 1)
Raw milk
Cream Liquid Skim
Joint costs are costs Incurred in
producing the raw milk
Joint-Cost Basics (E.g. 2)
Joint-Cost Basics (E.g. 2)
Coal
Learning Objective 2
Learning Objective 2
Joint Products and Byproducts
Joint Products and Byproducts
Sales Value
High Low
Main Product = 1
Learning Objective 3
Learning Objective 3
Why Allocate Joint Costs?
Why Allocate Joint Costs?
• to compute inventory cost and cost of goods sold • to determine cost reimbursement under contracts • for insurance settlement computations
• for rate regulation
Learning Objective 4
Learning Objective 4
Approaches to Allocating
Joint Costs
Approaches to Allocating
Joint Costs
Approach 2: Physical measure Approach 1:
Market based
Approach 1: Market-based Data
–
3 methods
Approach 1: Market-based Data
–
3 methods
(1) - Sales value at split-off method
(1) Sales Value at Split-off
Method Example
(1) Sales Value at Split-off
Method Example
10,000 units of A at a
selling price of $10 = $100,000
10,500 units of B at a
selling price of $30 = $315,000
11,500 units of C at a
selling price of $20 = $230,00
Joint processing cost is $200,000
(1) Sales Value at Split-off
Method Example
(1) Sales Value at Split-off
Method Example
A B C Total Sales Value $100,000 $315,000 $230,000 $645,000 Allocation of
Joint Cost
100 ÷ 645 31,008
315 ÷ 645 97,674
230 ÷ 645 71,318
(1) Sales Value at Split-off
Method Example
(1) Sales Value at Split-off
Method Example
Assume all of the units produced of B and C were sold.
2,500 units of A (25%) remain in inventory.
What is the gross margin of product A ?
(1) Sales Value at Split-off
Method Example
(1) Sales Value at Split-off
Method Example
Product A Revenues: 7,500 units × $10.00 $75,000 Cost of goods sold:
Joint product costs $31,008
Less ending inventory
$31,008 × 25% 7,752 23,256
(1) Sales Value at Split-off
Method Example
(1) Sales Value at Split-off
Method Example
Product A:
($75,000 – $ 23,256) ÷ $75,000 = 69% Product B:
($315,000 – $97,674) ÷ $315,000 = 69% Product C:
(2) Estimated Net Realizable Value
(NRV) Method Example
(2) Estimated Net Realizable Value
(NRV) Method Example
Assume that Oklahoma Company can process products A, B, and, C further into A1, B1, and C1.
The new sales values after further processing are:
A1:
10,000 × $12.00 = $120,000
B1:
10,500 × $33.00 = $346,500
C1:
(2) Estimated Net Realizable Value
(NRV) Method Example
(2) Estimated Net Realizable Value
(NRV) Method Example
Additional processing (separable) costs are as follows:
A1: $35,000 B1: $46,500 C1: $51,500
(2) Estimated Net Realizable Value
(NRV) Method Example
(2) Estimated Net Realizable Value
(NRV) Method Example
Product A1: $120,000 – $35,000 = $85,000 Product B1: $346,500 – $46,500 = $300,000 Product C1: $241,500 – $51,500 = $190,000
(2) Estimated Net Realizable Value
(NRV) Method Example
(2) Estimated Net Realizable Value
(NRV) Method Example
To A1:
85 ÷ 575 × $200,000 = $29,565 To B1:
300 ÷ 575 × $200,000 = $104,348 To C1:
(2) Estimated Net Realizable Value
(NRV) Method Example
(2) Estimated Net Realizable Value
(NRV) Method Example
Allocated Separable Inventory joint costs costs costs
(3) Constant Gross-Margin
Percentage NRV Method
(3) Constant Gross-Margin
Percentage NRV Method
This method entails three steps:
Step 1:
Compute the overall gross-margin percentage.
Step 2:
Use the overall gross-margin percentage and deduct the gross margin from the
(3) Constant Gross-Margin
Percentage NRV Method
(3) Constant Gross-Margin
Percentage NRV Method
Step 3:
(3) Constant Gross-Margin
Percentage NRV Method
(3) Constant Gross-Margin
Percentage NRV Method
What is the expected final sales value of total production during the accounting period?
Product A1: $120,000 Product B1: 346,500 Product C1: 241,500
(3) Constant Gross-Margin
Percentage NRV Method
(3) Constant Gross-Margin
Percentage NRV Method
Step 1:
Compute the overall gross-margin percentage. Expected final sales value $708,000 Deduct joint and separable costs 333,000
Gross margin $375,000
Gross margin percentage:
(3) Constant Gross-Margin
Percentage NRV Method
(3) Constant Gross-Margin
Percentage NRV Method
Step 2:
Deduct the gross margin.
Sales Gross Cost of
(3) Constant Gross-Margin
Percentage NRV Method
(3) Constant Gross-Margin
Percentage NRV Method
Step 3:
Deduct separable costs.
Approach 2: Physical
Measure Method Example
Approach 2: Physical
Measure Method Example
$200,000 joint cost
Learning Objective 5
Learning Objective 5
Explain why the sales value at
splitoff method is preferred
Choosing a Method
Choosing a Method
Why is the sales value at split-off method widely used?
It measures the value of the joint product
immediately.
It does not anticipate subsequent management
decisions.
It uses a
Choosing a Method
Choosing a Method
The physical-measure method is a more appropriate method to use in rate regulation. The NRV method should be used when there is
Avoiding Joint Cost Allocation
Avoiding Joint Cost Allocation
Some companies refrain from allocating joint costs and instead carry their inventories
Learning Objective 6
Learning Objective 6
Explain why joint costs
are irrelevant in a
Irrelevance of Joint Costs
for Decision Making
Irrelevance of Joint Costs
for Decision Making
Assume that products A, B, and C can be sold at the splitoff point or processed further
into A1, B1, and C1.
Selling Selling Additional Units price price costs
Irrelevance of Joint Costs
for Decision Making
Irrelevance of Joint Costs
for Decision Making
Should A, B, or C be sold at the splitoff point or processed further?
Product A: Incremental revenue $20,000
– Incremental cost $35,000 = ($15,000) Product B: Incremental revenue $31,500
– Incremental cost $26,500 = $5,000 Product C: Incremental revenue $11,500
Irrelevance of Joint Costs
for Decision Making
Irrelevance of Joint Costs
for Decision Making
Should A, B, or C be sold at the splitoff point or processed further?
Product A: Incremental revenue $20,000
– Incremental cost $35,000 = ($15,000) Product B: Incremental revenue $31,500
– Incremental cost $26,500 = $5,000 Product C: Incremental revenue $11,500
Split-off
Processed further
Learning Objective 7
Learning Objective 7
Account for byproducts
Accounting for Byproducts
Accounting for Byproducts
Method A:
The production method recognizes byproducts at the time their production is completed.
(Conceptually, this is the correct method)
Method B:
Accounting for Byproducts
Example
Accounting for Byproducts
Example
Main Products Byproducts (Yards) (Yards)
Production 1,000 400
Sales 800 300
Ending inventory 200 100
Sales price $13/yard $1.00/yard
Accounting for Byproducts
Example
Accounting for Byproducts
Example
Joint production costs for joint (main) products and byproducts:
Material $2,000
Accounting for Byproducts
Method A
Accounting for Byproducts
Method A
Method A: The production method
What is the value of ending inventory of joint (main) products?
$9,000 total production cost
– $400 net realizable value of the byproduct
Accounting for Byproducts
Method A
Accounting for Byproducts
Method A
200 ÷ 1,000 × $8,600 = $1,720 is the value assigned to the 200 yards in ending inventory.
What is the cost of goods sold?
Joint production costs $9,000
Less byproduct revenue 400 Less main product inventory 1,720
Accounting for Byproducts
Method A
Accounting for Byproducts
Method A
Income Statement (Method A)
Revenues: (800 yards × $13) $10,400 Cost of goods sold 6,880
Gross margin $ 3,520
Accounting for Byproducts
Method A
Accounting for Byproducts
Method A
What are the inventoriable costs?
Journal Entries Method A
Journal Entries Method A
Work in Process 2,000
Accounts Payable 2,000
To record direct materials purchased and used in production
Work in Process 7,000
Various Accounts 7,000
Journal Entries Method A
Journal Entries Method A
Byproduct Inventory 400
Finished Goods 8,600
Work in Process 9,000
To record cost of goods completed Cost of Goods Sold 6,880
Finished Goods 6,880
Journal Entries Method A
Journal Entries Method A
Cash or Accounts Receivable 10,400
Revenues 10,400
Accounting for Byproducts
Method B
Accounting for Byproducts
Method B
Method B: The sale method
What is the value of ending inventory of joint (main) products?
200 ÷ 1,000 × $9,000 = $1,800
No value is assigned to the 400 yards of byproducts at the time of production.
Accounting for Byproducts
Method B
Accounting for Byproducts
Method B
Income Statement (Method B)
Revenues: Main product (800 × $13) $10,400
Byproducts sold 300
Total revenues $10,700
Cost of goods sold:
Joint production costs 9,000
Less main product inventory 1,800 $ 7,200
Accounting for Byproducts
Method B
Accounting for Byproducts
Method B
What is the gross margin percentage? $3,200 ÷ $10,700 = 29.91%
What are the inventoriable costs?
-0-Journal Entries Method B
Journal Entries Method B
Work in Process 2,000
Accounts Payable 2,000
To record direct materials purchased and used in production
Work in Process 7,000
Various Accounts 7,000
Journal Entries Method B
Journal Entries Method B
Finished Goods 9,000
Work in Process 9,000
To record cost of goods completed Cost of Goods Sold 7,200
Finished Goods 7,200
Journal Entries Method B
Journal Entries Method B
Cash or Accounts Receivable 10,400
Revenues 10,400
To record the sale of the main product Cash or Accounts Receivable 300
Revenues 300