Ethel Company buys Article G for PO.80 per unit. At the end of processing in Department 1, Article G split into producing D, E and F. Product D is sold at sp with no further processing. E and F require further processing before they can E is processed in department 2; and F is processed in Department 3. The follo summary of costs and other related data for the year ended July 31, 2021. Cost of Article G Department 1 Department 2. Department 3 Direct Materials P1,440,000 Direct Labor 210,000 P675,000 P975,000 Factory Overhead 150,000 315,000 735,000 Product D Product E Product F Unit sold 300,000 450,000 675,000 Units on hand-7/30 150,000 225,000 Sales P450,000 P1.440,000 P2,126,250
Ethel Company buys Article G for PO.80 per unit. At the end of processing in Department 1, Article G split into producing D, E and F. Product D is sold at sp with no further processing. E and F require further processing before they can E is processed in department 2; and F is processed in Department 3. The follo summary of costs and other related data for the year ended July 31, 2021. Cost of Article G Department 1 Department 2. Department 3 Direct Materials P1,440,000 Direct Labor 210,000 P675,000 P975,000 Factory Overhead 150,000 315,000 735,000 Product D Product E Product F Unit sold 300,000 450,000 675,000 Units on hand-7/30 150,000 225,000 Sales P450,000 P1.440,000 P2,126,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ethel uses the estimated net realizable value method to allocate the joint cost.
1. The cost of Product E sold for the year ended July 31, 2021.
a. 1,470,000
b. 990,000
c. 1,350,000
d. 1,440,000
2. The cost of ending inventory for Product D is
a. 180,000
b. 225,000
c. 540,000
d. 270,000
3. The Gross
a. 168,750
b. 101, 250
c. (483,750)
d. 1,226,250
Transcribed Image Text:Ethel Company buys Article G for PO.80 per unit. At the end of processing in
Department 1, Article G split into producing D, E and F. Product D is sold at split-off
with no further processing. E and F require further processing before they can be sold.
E is processed in department 2; and F is processed in Department 3. The following is a
summary of costs and other related data for the year ended July 31, 2021.
Cost of Article G
Department 1
Department
Department 3
Direct Materials
P1,440,000
Direct Labor
210,000
P675,000
P975,000
Factory Overhead
150,000
315,000
735,000
Product D
Product
Product F
Unit sold
300,000
450,000
675,000
Units on hand-7/30
150,000
225,000
Sales
P450.000
P1.440,000
P2,126,250
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education