Leigh Manufacturers produces three products from a common manufacturing process.  The total joint cost of producing 2,000 pounds of Product A; 1,000 pounds of Product B; and 1,000 pounds of Product C is P7,500. Selling price per pound of the three products are P15 for Product A; P10 for Product B; and P5 for Product C. Joint cost is allocated using the sales value method. Compute the unit cost of Product A if all three products are main products. Compute the unit cost of Product A if Products A and B are main products and Product C is a by-product for which the cost reduction method is used.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Leigh Manufacturers produces three products from a common manufacturing process.  The total joint cost of producing 2,000 pounds of Product A; 1,000 pounds of Product B; and 1,000 pounds of Product C is P7,500. Selling price per pound of the three products are P15 for Product A; P10 for Product B; and P5 for Product C. Joint cost is allocated using the sales value method.

  1. Compute the unit cost of Product A if all three products are main products.
  2. Compute the unit cost of Product A if Products A and B are main products and Product C is a by-product for which the cost reduction method is used.
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