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1. Allocate the joint costs of P100,000 between copra and vinegar under the (a) sale ue at split-off method, (b) physical measure (tons) method, and (c) Net Realizable Valu V) method.

1. Allocate the joint costs of P100,000 between copra and vinegar under the (a) sale ue at split-off method, (b) physical measure (tons) method, and (c) Net Realizable Valu V) method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1 Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to the split-off point, at which time two saleable products were produced: copra and vinegar. Vinegar can be further processed into alcohol. The July 2020 production and sales data are: Sales Price per Ton P50 per ton Production Sales 1,200 tons 800 tons 1,200 tons Copra Vinegar Alcohol 500 tons 500 tons P200 per ton All 800 tons.of vinegar were further processed, at an incremental cost of P20,000, to yield 500 tons of alcohol. There were no beginning or ending inventories of copra, vinegar, or alcohol in July. There is an active market for vinegar. Bulacan Products could have sold all of its July production of vinegar at P75 a ton. Required: 1. Allocate the joint costs of P100,000 between copra and vinegar under the (a) sales value at split-off method, (b) physical measure (tons) method, and (c) Net Realizable Value (NRV) method.
Transcribed Image Text:Problem 1 Bulacan Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2020, Bulacan purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to the split-off point, at which time two saleable products were produced: copra and vinegar. Vinegar can be further processed into alcohol. The July 2020 production and sales data are: Sales Price per Ton P50 per ton Production Sales 1,200 tons 800 tons 1,200 tons Copra Vinegar Alcohol 500 tons 500 tons P200 per ton All 800 tons.of vinegar were further processed, at an incremental cost of P20,000, to yield 500 tons of alcohol. There were no beginning or ending inventories of copra, vinegar, or alcohol in July. There is an active market for vinegar. Bulacan Products could have sold all of its July production of vinegar at P75 a ton. Required: 1. Allocate the joint costs of P100,000 between copra and vinegar under the (a) sales value at split-off method, (b) physical measure (tons) method, and (c) Net Realizable Value (NRV) method.
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