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Chemi Co. produces chemicals Koo and Lam and incident to their production recovers a by-product, Boo. The joint costs of processing is reduced by the net realizable value of Boo. For the month of May 2021, the joint costs of processing amount to P3,840,000. Additional information are shown below: a.  P1,800,000 b. • P2,160,000 c. • P2,208,000 d. • P2,700,000

Chemi Co. produces chemicals Koo and Lam and incident to their production recovers a by-product, Boo. The joint costs of processing is reduced by the net realizable value of Boo. For the month of May 2021, the joint costs of processing amount to P3,840,000. Additional information are shown below: a.  P1,800,000 b. • P2,160,000 c. • P2,208,000 d. • P2,700,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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53. Chemi Co. produces chemicals Koo and Lam and incident to their production recovers a by-product, Boo. The joint costs of processing is reduced by the net realizable value of Boo. For the month of May 2021, the joint costs of processing amount to P3,840,000. Additional information are shown below:

a.  P1,800,000
b. • P2,160,000
c. • P2,208,000
d. • P2,700,000
Product Production Market Value 2,000,000 3,000,000 1,000,000 P3,000,000 2,000,000 420,000 Коо Lam Воo An additional P180,000 was spent to complete the processing of Boo. Assuming that the company uses the net realizable value method for allocating joint costs, the joint costs allocated to Koo would be
Transcribed Image Text:Product Production Market Value 2,000,000 3,000,000 1,000,000 P3,000,000 2,000,000 420,000 Коо Lam Воo An additional P180,000 was spent to complete the processing of Boo. Assuming that the company uses the net realizable value method for allocating joint costs, the joint costs allocated to Koo would be
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