24. Fundador Inc. manufactures X product from a process that yields a by-product called Z. The by-product requires additional processing cost of P30,000. The by- product will require selling and administrative expenses totaling P20,000. It is Fundador's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2020 follows: Product Units Produced Market Value at Split off Units Sold 100,000 P50 60,000 8,000 10 8,000 The Joint costs incurred up to split-off point are: Direct materials P2,000,000
24. Fundador Inc. manufactures X product from a process that yields a by-product called Z. The by-product requires additional processing cost of P30,000. The by- product will require selling and administrative expenses totaling P20,000. It is Fundador's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2020 follows: Product Units Produced Market Value at Split off Units Sold 100,000 P50 60,000 8,000 10 8,000 The Joint costs incurred up to split-off point are: Direct materials P2,000,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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What is the net income for the year if the net revenue from by-product is treated as deduction from the cost of goods sold?
Group of answer choices
d. P118,000
b. P230,000
a. P200,000
c. P218,000
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