Manufacturing
Allocating Costs to Joint Products
Splitting common production costs between two different products created from the same process.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory: Product A | Asset (+) | 3,000.00 | - |
| Inventory: Product B | Asset (+) | 2,000.00 | - |
| Work-in-Process (Joint Costs) | Asset (-) | - | 5,000.00 |
💡 Accountant's Note
Common in industries like oil refining or dairy. Total costs are split based on the 'Sales Value at Split-off' or physical quantity of the resulting products.
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