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Abel Corp. manufactures a product that yields the by-product "Yum." The only costs associated with Yum are selling costs of P.10 for each unit sold. Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. 4. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would ar Increase by P 90,000 b. Increase by P 100,000 G Increase by P 110.000 2. Be unaffected 5. If Abel changes-its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 Increase by P110,000 Be unaffected ai b. &

Abel Corp. manufactures a product that yields the by-product "Yum." The only costs associated with Yum are selling costs of P.10 for each unit sold. Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. 4. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would ar Increase by P 90,000 b. Increase by P 100,000 G Increase by P 110.000 2. Be unaffected 5. If Abel changes-its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 Increase by P110,000 Be unaffected ai b. &

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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Cost Accounting 3. If Lane uses the net realizable value method of allocating joint costs, how much of the joint cost should be allocated to product K. a P 18,800 bP 20,000 GP 26,667 d- P 27,432 Abel Corp. manufactures a product that yields the by-product "Yum." The only costs associated with Yum are selling costs of P.10 for each unit sold: Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. 4. If Abel changes its method of accounting for Yum's sales by showing the net. amount as additional sales revenue, then Abel's gross margin would ar Increase by P 90,000 b. Increase by P 100,000, Increase by P 110.000 Be unaffected G If Abel changes-its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000, Increase by P110,000 & Be unaffected ai b.
Transcribed Image Text:Cost Accounting 3. If Lane uses the net realizable value method of allocating joint costs, how much of the joint cost should be allocated to product K. a P 18,800 bP 20,000 GP 26,667 d- P 27,432 Abel Corp. manufactures a product that yields the by-product "Yum." The only costs associated with Yum are selling costs of P.10 for each unit sold: Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. 4. If Abel changes its method of accounting for Yum's sales by showing the net. amount as additional sales revenue, then Abel's gross margin would ar Increase by P 90,000 b. Increase by P 100,000, Increase by P 110.000 Be unaffected G If Abel changes-its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000, Increase by P110,000 & Be unaffected ai b.
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