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In this question 5 of the notes , Shouldn't we multiple by the selling price by units sold ? But why is it multiple by the units produced ? (While allocating joint cost)
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Swathi Krishna
CA Inter
★ 7K+
17-Nov-20
42
Answers (6)
Cost is incurred for production.
Suraj Lakhotia
Admin
Ohooo .....k
Thread Starter
Thax sir
Sir , Is Profit margin deducted from sales value to arrive at NRV only in costing as shown in this formula?
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Yedu Krishnan
★ 1K+
19-Nov-20
This is to arrive at NRV at split off point. For AS-2 we calculate NRV of finished product.
Thank you sir
