Donna Corporation manufactures products (Bud, Cud, and Dud) from a joint process The total costs for January is P250,000. Other information for January show: Quantity Processing cost after SO Ultimate sales value Bud 3,000 P50,000 150,000 (2) P150,000 (2) P175,000 (2) P200,000 (2) P200,000 Cud 4,000 P75,000 275,000 19. What is the total production cost for (1) Bud, (2) Cud, and (3) Dud using the market value method? a. (1) P100,000 b. (1) P125,000 c. (1) P137,500 d. (1) P112,500 (3) P250,000 (3) P200,000 (3) P225,000 (3) P187,500 Dud 3,000 P125,000 225,000
Donna Corporation manufactures products (Bud, Cud, and Dud) from a joint process The total costs for January is P250,000. Other information for January show: Quantity Processing cost after SO Ultimate sales value Bud 3,000 P50,000 150,000 (2) P150,000 (2) P175,000 (2) P200,000 (2) P200,000 Cud 4,000 P75,000 275,000 19. What is the total production cost for (1) Bud, (2) Cud, and (3) Dud using the market value method? a. (1) P100,000 b. (1) P125,000 c. (1) P137,500 d. (1) P112,500 (3) P250,000 (3) P200,000 (3) P225,000 (3) P187,500 Dud 3,000 P125,000 225,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Step 1: Introduce to Joint cost and market value at Split off point
VIEWStep 2: Working for market value at split off point
VIEWStep 3: Working for proportion of market value at split off point
VIEWStep 4: Working for allocation of joint cost
VIEWStep 5: Working for total production costs
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