THE ALLOCATING JOINT COSTS IN DETERMINING COST OF GOODS MANUFACTURE IN PT. X

Abstract

In determining cost of goods manufacture, the company needs to pay attention to many factors that can influence the change in sales. One of the factors that influence this problem of determining cost of good manufacture per unit must be calculated carefully and precisely. Along with this problem, the author conduct this research to calculate the most accurate cost of goods manufacture based on allocating joint cost method and to know the allocating joint cost methods which result in the lowest cost of goods manufacture in PT. X. Based on the result of the research, it can be conclude that in the calculations carried out by PT. X, it only imposes costs on raw materials and labor costs, while manufacture overhead. Although manufacture overhead costs don’t have a direct relationship with the products produced, the manufacture overhead cost is part of the production costs. Because the manufacture overhead costs are part of production costs.