BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20,000; 30,000; 5,000 and 5,000); Unit sold (18,000; 25.000; 5,000 and 5,000); Final unit selling prices (P25.00; P20.00; P2.00 and P1.50); Further processing costs (P150,000: P210.000; PS,000 and P4.000); Selling and Administrative expenses (P15.000: P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1.500). If the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product B? O P10.42 P10 P10.49 O P11.00 BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. Other information are as follows: Units produced (20.000; 30.000; 5,000 and 5,000): Unit sold (18,000; 25.000: 5.000 and 5.000): Final unit selling prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs (P150,000; P210.000; P5,000 and P4,000): Selling and Administrative expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D (P2.000 and P1,500). If the entity uses average unit costs method in joint products and the net proceeds of sale of by-products are presented as additional revenue of the main products, what is the total unit cost of Product A?" P11.50 P12.16 P12.21 P12.26

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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BSBA Company produced two joint products A and B, and by-products C
and D from the same raw materials with joint costs P200,000. The entity
uses net realizable value in allocating joint costs to joint products. Other
information are as follows: Units produced (20,000; 30,000; 5,000 and
5,000); Unit sold (18,000; 25.000; 5,000 and 5,000); Final unit selling
prices (P25.00; P20.00; P2.00 and P1.50); Further processing costs
(P150,000: P210.000; PS,000 and P4.000); Selling and Administrative
expenses (P15.000: P21,000; P500 and P400); Desired profit on C and D
(P2.000 and P1.500). If the net proceeds of sale of by-products are
presented as additional revenue of the main products, what is the total
unit cost of Product B?
O P10.42
P10
P10.49
O P11.00
BSBA Company produced two joint products A and B, and by-products C
and D from the same raw materials with joint costs P200,000. Other
information are as follows: Units produced (20.000; 30.000; 5,000 and
5,000): Unit sold (18,000; 25.000: 5.000 and 5.000): Final unit selling
prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs
(P150,000; P210.000; P5,000 and P4,000): Selling and Administrative
expenses (P15,000; P21,000; P500 and P400); Desired profit on C and D
(P2.000 and P1,500). If the entity uses average unit costs method in joint
products and the net proceeds of sale of by-products are presented as
additional revenue of the main products, what is the total unit cost of
Product A?"
P11.50
P12.16
P12.21
P12.26

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Joint expenses occur when the handling of a similar raw material or manufacturing capacity results in the manufacture of two or more separate products at the same time. Joint costs refer to a scenario in which the underlying character of the elements of production results in two or more finished goods.

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Decision to Sell before or after additional processing

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