Company produced and sold 30,000 units Product K and 2,000 units by-product W from the same process with joint cost P420,000. At split-off, the selling prices for K is P25 per unit while W is P5 per unit. BSBA desires P4,000 net profit on by-products. Using the reversal cost method in accounting for by-products, what is the unit cost of Product K and total cost of goods sold, respectively P13.80 and P420,000 P14.00 and P414,000 P14.00 and P420,000 P13.80 and P414,000
Company produced and sold 30,000 units Product K and 2,000 units by-product W from the same process with joint cost P420,000. At split-off, the selling prices for K is P25 per unit while W is P5 per unit. BSBA desires P4,000 net profit on by-products. Using the reversal cost method in accounting for by-products, what is the unit cost of Product K and total cost of goods sold, respectively P13.80 and P420,000 P14.00 and P414,000 P14.00 and P420,000 P13.80 and P414,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company produced and sold 30,000 units Product K and 2,000 units by-product W from the same process with joint cost P420,000. At split-off, the selling prices for K is P25 per unit while W is P5 per unit. BSBA desires P4,000 net profit on by-products. Using the reversal cost method in accounting for by-products, what is the unit cost of Product K and total cost of goods sold, respectively
P13.80 and P420,000
P14.00 and P414,000
P14.00 and P420,000
P13.80 and P414,000
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