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Solution 2
Solution 2
Gunther
Friedl
In the following case, the application of the equivalence number method is recommended.
Reason: The case displays a variant production. Due to similarities in production technology, the costs of
the different product types are proportional to each other in a way, which reflects the cost causation: the
metal sheet thickness displays a reference value, to which the costs to be distributed are proportional.
b)
2,930 €879,000
€879,000
= €300 per EU
2,930 EU
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EXERCISE COST ACCOUNTING Prof. Dr. Gunther
Friedl
D1 €30,000
A B
C D E F G
MV: €40,000 MV: € 25,000 MV: €30.000 MV: €5,000
MC: €16,000 MC: €21,000 MC: €14,000 MC: €1,000
P: €24,000 P: €4,000 P: €16,000 P: €4,000 €60,000
D5 €88,000
MC: €148,000
H
MV: €500,000
MC: €148,000
P: €352,000
Costs for production of joint and byproducts = €30,000 + €40,000 + €30,000 = €100,000
Market value A = (MVC – direct costsC) + (MVD – direct costsD) = 40,000 – 10,000 + 25,000 – 20,000 =
35,000
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EXERCISE COST ACCOUNTING Prof. Dr. Gunther
Friedl
Market value B = (MVE – direct costsE) + MVF + (MVH – direct costsH) = 20,000 + 5,000 + 440,000 =
465,000
Disposal A 12,000
Subtotal 112,000
Subtotal 87,000
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