Ansel Company manufactures liquid chemicals X and Y from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs Php5,000 to process 500 gallons of Product X and 1,000 gallons of Product Y to the split-off point. The market value at split-off is Php10 per gallon for Product X and Php15 for Product Y. Product Y requires an additional process beyond split-off at a cost of Php5 per gallon before it can be sold. What is Ansel Company's cost to produce 1,000 gallons of Product Y

Ansel Company manufactures liquid chemicals X and Y from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs Php5,000 to process 500 gallons of Product X and 1,000 gallons of Product Y to the split-off point. The market value at split-off is Php10 per gallon for Product X and Php15 for Product Y. Product Y requires an additional process beyond split-off at a cost of Php5 per gallon before it can be sold. What is Ansel Company's cost to produce 1,000 gallons of Product Y

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 4CMA: Tucariz Company processes Duo into two joint products, Big and Mini. Duo is purchased in...

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