Harga Pokok Produk Bersama Dan Produk Sampingan PERTEMUAN XIV Dr Rilla Gantino, SE., AK., MM Prodi Akuntansi -FEB
Harga Pokok Produk Bersama Dan Produk Sampingan PERTEMUAN XIV Dr Rilla Gantino, SE., AK., MM Prodi Akuntansi -FEB 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 Identify the split-off point(s) in a joint-cost situation.
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
Separable costs are costs incurred in producing these separately identifiable products
Split-off point
Joint-Cost Basics (E.g. 2)
Joint-Cost Basics (E.g. 2)
Coal Gas Benzyl Tar
Learning Objective 2 Learning Objective 2 Distinguish joint products from byproducts.
Joint Products and Byproducts
Joint Products and Byproducts
Sales Value High Low Main Product = 1 Joint Products ≥ 2 Byproducts
Learning Objective 3 Learning Objective 3 Explain why joint costs should be allocated to discrete products.
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
- for litigation purposes
Learning Objective 4 Learning Objective 4 Allocate joint costs using four different methods.
Joint Costs
Joint Costs
Approach 2: Physical measure
Approach 1: Market based
Two (2) basic ways to allocate joint costs to products are:
Approach 1: Market-based Data
Approach 1: Market-based Data
– 3 methods
– 3 methods
(1) - Sales value at split-off method (2) - Estimated net realizable value (NRV) method
(3) - Constant gross-margin percentage NRV method
(1) Sales Value at Split-off (1) Sales Value at Split-off
Method Example
Method Example
10,000 units of A at a selling price of $10 = $100,000 Joint processing cost is $200,000
10,500 units of B at a selling price of $30 = $315,000 11,500 units of C at a
Splitoff point selling price of $20 = $230,00
(1) Sales Value at Split-off
(1) Sales Value at Split-off
Method Example
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 ÷ 64597,674 230 ÷ 645 71,318 200,000
Gross margin $ 68,992 $217,326 $158,682 $445,000
Method Example 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 ? What is the gross margin percentage of each product?
Method Example 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 Gross margin
$51,744
Method Example
Method Example
Product A: ($75,000 – $ 23,256) ÷ $75,000 = 69%
Product B: ($315,000 – $97,674) ÷ $315,000 = 69%
Product C: ($230,000 – $71,318) ÷ $230,000 = 69%
(NRV) Method Example (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:
11,500 × $21.00 = $241,500
(NRV) Method Example (NRV) Method Example
Additional processing (separable) costs are as follows: A1: $35,000
B1: $46,500 C1: $51,500 What is the estimated net realizable value of each product at the splitoff point?
(NRV) Method Example (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
How much of the joint cost is allocated to each product?
(NRV) Method Example (NRV) Method Example
To A1: 85 ÷ 575 × $200,000 = $29,565 To B1: 300 ÷ 575 × $200,000 = $104,348 To C1: 190 ÷ 575 × $200,000 = $66,087
(NRV) Method Example (NRV) Method Example
Allocated Separable Inventory joint costs costs costs A1 $ 29,565 $ 35,000 $ 64,565 B1 104,348 46,500 150,848 C1 66,087 51,500 117,587 Total $200,000 $133,000 $333,000 Percentage NRV Method Percentage NRV Method
Step 1: Compute the overall gross-margin percentage.
Step 2:
Use the overall gross-margin percentage and deduct the gross margin from the final sales values to obtain the total costs that each product should bear.
Percentage NRV Method Percentage NRV Method
Step 3:
Deduct the expected separable costs from the total costs to obtain the joint-cost allocation.
Percentage NRV Method 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 Total
$708,000 Percentage NRV Method 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:
$375,000 ÷ $708,000 = 52.966% Percentage NRV Method
Percentage NRV Method Deduct the gross margin
Sales Gross Cost of Value Margin Goods sold
Product A1: $120,000 $ 63,559 $ 56,441 Product B1: 346,500 183,527 162,973 Product C1: 241,500 127,913 113,587 Total $708,000 $375,000 $333,000
($1 rounding)
Percentage NRV Method
Percentage NRV Method Deduct separable costs
Cost of Separable Joint costs goods sold costs allocated Product A1: $ 56,441 $ 35,000 $ 21,441 Product B1: 162,973 46,500 116,473 Product C1: 113,587 51,500 62,087 Total $333,000 $133,000 $200,000
Measure Method Example
Measure Method Example
$200,000 joint cost 20,000 pounds A
48,000 pounds B 12,000 pounds C
Product A $50,000
Product B $120,000
Product C $30,000
Learning Objective 5 Learning Objective 5 Explain why the sales value at splitoff method is preferred when allocating joint costs.
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 meaningful basis.
It is simple.
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 not enough information about individual selling prices at split-off point.
Avoiding Joint Cost Allocation
Avoiding Joint Cost Allocation
Some companies refrain from allocating joint costs and instead carry their inventories at estimated net realizable value.
Learning Objective 6 Learning Objective 6 Explain why joint costs are irrelevant in a sell-or-process-further decision. for Decision Making for Decision Making
at the splitoff point or processed further into A1, B1, and C1.
Selling Selling Additional Units price price costs 10,000
A: $10 A1: $12 $35,000 10,500
B: $30 B1: $33 $26,500 11,500
C: $20 C1: $21 $51,500 point or processed further? Product A: Incremental revenue $20,000
for Decision Making for Decision Making
- – Incremental cost $35,000 = ($15,000) Product B: Incremental revenue $31,500
- – Incremental cost $26,500 = $5,000 Product C: Incremental revenue $11,500
- – Incremental cost $51,500 = ($40,000)
Split-off Processed further Split-off
for Decision Making for Decision Making
- – Incremental cost $35,000 = ($15,000) Product B: Incremental revenue $31,500
- – Incremental cost $26,500 = $5,000 Product C: Incremental revenue $11,500
- – Incremental cost $51,500 = ($40,000)
Learning Objective 7 Learning Objective 7 Account for byproducts using two different methods. 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:
The sale method delays recognition of byproducts until the time of their sale.
(used when dollar amount of byproducts are immaterial)
Example
Example
Main Products Byproducts (Yards) (Yards)
Production 1,000 400 Sales
800 300 Ending inventory 200 100 Sales price $13/yard $1.00/yard No beginning finished goods inventory Example Example
Joint production costs for joint
(main) products and byproducts: Material
$2,000 Manufacturing labor 3,000 Manufacturing overhead 4,000 Total production cost $9,000 Method A 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 = $8,600 net production cost for the joint products
Method A
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 Cost of goods sold
$6,880 Method A
Method A
Income Statement (Method A) Revenues: (800 yards × $13) $10,400 Cost of goods sold 6,880 Gross margin
$ 3,520 What is the gross margin percentage?
$3,520 ÷ $10,400 = 33.85%
Method A
Method A
What are the inventoriable costs? Main product: 200 ÷ 1,000 × $8,600 = $1,720
Byproduct: 100 × $1.00 = $100 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
To record conversion costs in the joint process
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
To record the cost of the main product sold
Journal Entries Method A
Journal Entries Method A
Cash or Accounts Receivable 10,400 Revenues
10,400 To record the sale of the main product
Method B
Method B
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.
The $300 resulting from the sale of byproducts is reported as revenues.
Method B
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
Gross margin $ 3,200
Method B
Method B
What is the gross margin percentage? $3,200 ÷ $10,700 = 29.91%
What are the inventoriable costs? Main product: 200 ÷ 1,000 × $9,000 = $1,800
By-product: -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
To record conversion costs in the joint process
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
To record the cost of the main product sold
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
To record the sale of the byproduct