A Corporation manufactures two products out of a joint process—X and Y. The joint (common) costs incurred are Php250,000 for a standard production run that generates 120,000 gallons of X and 80,000 gallons of Y. X sells for Php2.00 per gallon, while Y sells for Php3.25 per gallon. If there are no additional processing costs incurred after the split-off point, what is the amount of joint cost of each production run allocated to Product X?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A Corporation manufactures two products out of a joint process—X and Y. The joint (common) costs incurred are Php250,000 for a standard production run that generates 120,000 gallons of X and 80,000 gallons of Y. X sells for Php2.00 per gallon, while Y sells for Php3.25 per gallon. If there are no additional processing costs incurred after the split-off point, what is the amount of joint cost of each production run allocated to Product X?

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