A B C. EXERCISE 6-7 Sell or Process Further Decisions L06-7 Dorsey Company manufactures three products from a common input in a joint processing opera- tion. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Ino Intone pru iqosor megmes or blood? Product B С. Jino q 00. Product Selling Price $16 per pound $8 per pound $25 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons $63,000 $80,000 $36,000 Selling Price a e laimon adT beson maod zad jy obno aidT $20 per pound $13 per pound $32 per gallon 1

A B C. EXERCISE 6-7 Sell or Process Further Decisions L06-7 Dorsey Company manufactures three products from a common input in a joint processing opera- tion. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Ino Intone pru iqosor megmes or blood? Product B С. Jino q 00. Product Selling Price $16 per pound $8 per pound $25 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons $63,000 $80,000 $36,000 Selling Price a e laimon adT beson maod zad jy obno aidT $20 per pound $13 per pound $32 per gallon 1

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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Peter Company produces four solvents from the same process: A,B,C and D. Joint product costs are P9,000 ( Round to the nearest peso) Product Barrels SP @ Split-Off Pt. Cost to sell @ Split-off Separable Cost Final sales price A 750 P10.00 P6.50 P2.00 P13.50 B 1,000 8.00 4.00 2.50 10.00 C 1,400 11.00 7.00 4.00 15.50 D 2,000 15.00 9.50 4.50 19.50 If Peter Company sells the products after further processing, the following costs to sell will be incurred: A-P2.50 B-P1.00 C-P3.50 D- P6.00 Using a…
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