Janice Corporation processes direct materials up to the split-off point, where products R and S are produced and thereafter sold. For the month just ended, the following information were made available Direct materials processed- 20,000 gallons (yield- 19,000 gallons of good product and 1,000 gallons of shrinkage) Production R 10,000 gallons 9,000 gallons Unit selling price R S P1,500 per gallon P1,000 per gallon The cost of buying 20,000 gallons of direct materials and processing up to split off point to yield a total of 19,000 gallons of good products was P19,500,000. The beginning inventories totaled 100 gallons for R and 50 gallons for S. Ending inventories amounts reflected 600 galions for R and 1,050 gallons for S. Using the volume of production as the basis for allocating joint costs, the assigned costs to R and S would be a. R, P 9,750,000 b. R, P10,550,000 and S, P8,950,000 c. R, P10,028,571.43 and S, P9,471,426.57 Jd. R, P10,263,157.89 and S, P9,236,842.11 17. and S, P9,750,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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#17

Janice Corporation processes direct materials up to the split-off point, where products
R and S are produced and thereafter sold. For the month just ended, the following
information were made available
Direct materials processed-
20,000 gallons (yield- 19,000 gallons of good
product and 1,000 gallons of shrinkage)
Production
R
10,000 gallons
9,000 gallons
Unit selling price
P1,500 per gallon
P1,000 per gallon
S
The cost of buying 20,000 gallons of direct materials and processing up to split off
point to yield a total of 19,000 gallons of good products was P19,500,000. The
beginning inventories totaled 100 gallons for R and 50 gallons for S. Ending
inventories amounts reflected 600 galions for R and 1,050 gallons for S.
Using the volume of production as the basis for allocating joint costs, the
assigned costs to R and S would be
a. R, P 9,750,000
b. R, P10,550,000 and S, P8,950,000
c. R, P10,028,571.43 and S, P9,471,426.57
/d. R, P10,263,157.89 and S, P9,236,842.11
17.
and S, P9,750,000
Transcribed Image Text:Janice Corporation processes direct materials up to the split-off point, where products R and S are produced and thereafter sold. For the month just ended, the following information were made available Direct materials processed- 20,000 gallons (yield- 19,000 gallons of good product and 1,000 gallons of shrinkage) Production R 10,000 gallons 9,000 gallons Unit selling price P1,500 per gallon P1,000 per gallon S The cost of buying 20,000 gallons of direct materials and processing up to split off point to yield a total of 19,000 gallons of good products was P19,500,000. The beginning inventories totaled 100 gallons for R and 50 gallons for S. Ending inventories amounts reflected 600 galions for R and 1,050 gallons for S. Using the volume of production as the basis for allocating joint costs, the assigned costs to R and S would be a. R, P 9,750,000 b. R, P10,550,000 and S, P8,950,000 c. R, P10,028,571.43 and S, P9,471,426.57 /d. R, P10,263,157.89 and S, P9,236,842.11 17. and S, P9,750,000
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