Comely Products manufactures three products RS and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S and two kilos of T. During August, 50.000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs: Further Processing cost Selling Price Product R P 30000 10 Product S P 20000 12 Product T P 30000 15 Required: Assuming that all units are sold, the gross margin on sales for Product S is The unit cost of Product R is (round off to two decimal places if needed) If all units of Product T are sold, and selling and administrative expenses are 20% of sales, the net income from the sale of Product T is
Comely Products manufactures three products RS and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S and two kilos of T. During August, 50.000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs: Further Processing cost Selling Price Product R P 30000 10 Product S P 20000 12 Product T P 30000 15 Required: Assuming that all units are sold, the gross margin on sales for Product S is The unit cost of Product R is (round off to two decimal places if needed) If all units of Product T are sold, and selling and administrative expenses are 20% of sales, the net income from the sale of Product T is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Comely Products manufactures three products RS and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S and two kilos of T. During August, 50.000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs:
|
Further Processing cost |
Selling Price |
||||
|
Product R |
P |
30000 |
10 |
||
|
Product S |
P |
20000 |
12 |
||
|
Product T |
P |
30000 |
15 |
Required:
- Assuming that all units are sold, the gross margin on sales for Product S is
- The unit cost of Product R is (round off to two decimal places if needed)
- If all units of Product T are sold, and selling and administrative expenses are 20% of sales, the net income from the sale of Product T is
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