JOINT PRODUCTS: Machintosh Company produces two products from a common input. Common Input Question 1 The sales value of Product A at the split-off point (without further processing) is P 60,000. The sales value of Product B at the split-off point (without further processing) is P 120,000. Product A Product B *Note: Split-off point is the juncture in the process when the products become separately identifiable. If Product A will be processed further after the split-off point, it will incur a processing cost of P 22,197, but its sales value after further processing will now be P 96,829. What will be the profit for Product A after further processing?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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JOINT PRODUCTS:
Machintosh Company produces two products from a common input.
Common
Input
Question 1
The sales value of Product A at the split-off point (without further processing) is P 60,000.
The sales value of Product B at the split-off point (without further processing) is P 120,000.
Product A
Product B
*Note: Split-off point is the juncture in the process
when the products become separately identifiable.
If Product A will be processed further after the split-off point, it will incur a processing cost of P 22,197, but its sales value after further processing will now be P 96,829. What will be the
profit for Product A after further processing?
Transcribed Image Text:JOINT PRODUCTS: Machintosh Company produces two products from a common input. Common Input Question 1 The sales value of Product A at the split-off point (without further processing) is P 60,000. The sales value of Product B at the split-off point (without further processing) is P 120,000. Product A Product B *Note: Split-off point is the juncture in the process when the products become separately identifiable. If Product A will be processed further after the split-off point, it will incur a processing cost of P 22,197, but its sales value after further processing will now be P 96,829. What will be the profit for Product A after further processing?
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