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Company manufactures three products - A, B, and as a result of a joint process.

Company manufactures three products - A, B, and as a result of a joint process.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Fun-fan Company manufactures three products - A, B, and C- as a result of a joint process. During October, joint processing costs totaled P288.000. Details regarding each of the three products are: Product A Product B Product C Units produced Units sold 5,000 4,300 Further processing costs P 25,000 P 60,000 P 105,000 P 50 1,000 800 3,000 2,500 P 80 P 100 Required: Assuming no finished goods inventory beginning and using the (1) market value method and Sales price per unit (2) weighted average method, compute the following: a. Allocated joint cost of each product. b. Total cost of each product. c. Cost per unit of each product. d. Cost of finished goods ending inventory. e Gross profit for each product and in total.
Transcribed Image Text:3. Fun-fan Company manufactures three products - A, B, and C- as a result of a joint process. During October, joint processing costs totaled P288.000. Details regarding each of the three products are: Product A Product B Product C Units produced Units sold 5,000 4,300 Further processing costs P 25,000 P 60,000 P 105,000 P 50 1,000 800 3,000 2,500 P 80 P 100 Required: Assuming no finished goods inventory beginning and using the (1) market value method and Sales price per unit (2) weighted average method, compute the following: a. Allocated joint cost of each product. b. Total cost of each product. c. Cost per unit of each product. d. Cost of finished goods ending inventory. e Gross profit for each product and in total.
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