Breaking Bad Company produces four chemicals from the same process: M1, M2, M3, and M4. Joint product costs are P9,000. (Round all answers to the nearest peso.) Barrels Sales price per barrel at split-off Disposal cost per barrel at split-off Further processing cost Final sales price per barrel M1 750 P10.00 P6.50 P2.00 P13.50 M2 1,000 8.00 4.00 2.50 10.00 M3 1,400 11.00 7.00 4.00 15.50 M4 2,000 15.00 9.50 4.50 19.50 If the company sells the products after processing, the following disposal costs will be incurred: M1, P2.50; M2, P1.00; M3, P3.50; M4, P6.00. Using sales value at split-off, what amount of joint processing cost is allocated to Product M1?
Breaking Bad Company produces four chemicals from the same process: M1, M2, M3, and M4. Joint product costs are P9,000. (Round all answers to the nearest peso.) Barrels Sales price per barrel at split-off Disposal cost per barrel at split-off Further processing cost Final sales price per barrel M1 750 P10.00 P6.50 P2.00 P13.50 M2 1,000 8.00 4.00 2.50 10.00 M3 1,400 11.00 7.00 4.00 15.50 M4 2,000 15.00 9.50 4.50 19.50 If the company sells the products after processing, the following disposal costs will be incurred: M1, P2.50; M2, P1.00; M3, P3.50; M4, P6.00. Using sales value at split-off, what amount of joint processing cost is allocated to Product M1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Breaking Bad Company produces four chemicals from the same process: M1, M2, M3, and M4. Joint product costs are P9,000. (Round all answers to the nearest peso.)
| Barrels | Sales price per barrel at split-off | Disposal cost per barrel at split-off | Further |
Final sales price per barrel | |
| M1 | 750 | P10.00 | P6.50 | P2.00 | P13.50 |
| M2 | 1,000 | 8.00 | 4.00 | 2.50 | 10.00 |
| M3 | 1,400 | 11.00 | 7.00 | 4.00 | 15.50 |
| M4 | 2,000 | 15.00 | 9.50 | 4.50 | 19.50 |
If the company sells the products after processing, the following disposal costs will be incurred: M1, P2.50; M2, P1.00; M3, P3.50; M4, P6.00.
Using sales value at split-off, what amount of joint processing cost is allocated to Product M1?
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