Neco 2018 Financial Accounting Question 37
Practice objective / multiple choice question 37 from the 2018 Neco Financial Accounting examination.
A manufacturing process yields two main products, A and B, and a by‑product C. The joint production cost is \(\text{₦}500,000\). At the split‑off point the quantities are:\n\n- Product A: 8,000 units\n- Product B: 12,000 units\n- By‑product C: 5,000 units\n\nFurther processing costs are \(\text{₦}30\) per unit of A and \(\text{₦}20\) per unit of B. After further processing the sales values are \(\text{₦}70\) per unit of A and \(\text{₦}50\) per unit of B. The by‑product C has a net realizable value of \(\text{₦}10\) per unit and requires no further processing. Using the net realizable value method, determine the unit cost of product A after allocation of the joint cost.
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About This Question
This is Neco 2018 Financial Accounting Question 37. It is one of the objective questions from the 2018 Neco Financial Accounting examination.
Difficulty level: Hard .
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