equipment costing P15,400 per quarter. Additional materials and labor also process Alpha further means that the company must rent some special Problem 17, page 323C- SHE Inc. (Sell or Process Further) Requirement: What is the effect of the process-further decision on the quarterly operating profit? Problem 17 (Sell or Process Further; Basic Analysis) SHE, Ic., produces three products (Alpha, Beta, and Gamma) from a common input. The joint costs for a typical quarter follow: Direct materials Direct labor Overhead P500,000 36,000 72,000 The revenues from each product are as follows: Alpha, P100,000; Bela, P93,000; and Gamma, P30,000. Management is considering processing Alpha beyond the split-off poin. which would increase the sales values of Alpha to P120,000. However. needed would cost P8,500 per quarter. SOLUTION & ANSWER:

equipment costing P15,400 per quarter. Additional materials and labor also process Alpha further means that the company must rent some special Problem 17, page 323C- SHE Inc. (Sell or Process Further) Requirement: What is the effect of the process-further decision on the quarterly operating profit? Problem 17 (Sell or Process Further; Basic Analysis) SHE, Ic., produces three products (Alpha, Beta, and Gamma) from a common input. The joint costs for a typical quarter follow: Direct materials Direct labor Overhead P500,000 36,000 72,000 The revenues from each product are as follows: Alpha, P100,000; Bela, P93,000; and Gamma, P30,000. Management is considering processing Alpha beyond the split-off poin. which would increase the sales values of Alpha to P120,000. However. needed would cost P8,500 per quarter. SOLUTION & ANSWER:

Name: · equipment costing P15,400 per quarter. Additional materials and. la
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Description: · equipment costing P15,400 per quarter. Additional materials and. labor alsoprocess Alpha further means that the company must rent some specialProblem 17, page 323C- SHE Inc. (Sell or Process Further)Requirement: What is the effect of the process-f

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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