Answer and solution please. Thank you! Assume that Whitehall Corporation agreed to sell AM-12 to Flank Corporation after further processing for P5.50 per unit. During the first month of production, Whitehall sold 50,000 units with 10,000 units remaining in inventory at the end of the month. Joint costs attributable to AM-12 were P180,000, and costs of processing AM-12 further were P90,000. With respect to AM-12, which one of the following statements is correct? a. The operating profit last month was P50,000 and the inventory value is P15,000 b. The operating profit last month was P50,000 and the inventory value is P45,000 c. The operating profit last month was P125,000 and the inventory value is P30,000 d. The operating profit last month was P200,000 and the inventory value is P45,000
Answer and solution please. Thank you!
Assume that Whitehall Corporation agreed to sell AM-12 to Flank Corporation after further processing for
P5.50 per unit. During the first month of production, Whitehall sold 50,000 units with 10,000 units remaining
in inventory at the end of the month. Joint costs attributable to AM-12 were P180,000, and costs of
processing AM-12 further were P90,000. With respect to AM-12, which one of the following statements is
correct?
a. The operating profit last month was P50,000 and the inventory value is P15,000
b. The operating profit last month was P50,000 and the inventory value is P45,000
c. The operating profit last month was P125,000 and the inventory value is P30,000
d. The operating profit last month was P200,000 and the inventory value is P45,000
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