Michelle Company produces joint Products A and B from a process that also yields a by-product Y. The by-product require additional processing before it can be sold. The cost assigned to the by-product is its market value minus additional costs incurred after split-off. Information concerning a batch produced in January, 2016 at a joint cost of P40,000 is as follows: UNITS MARKET VALUE COSTS AFTER SPLIT-OFF 800 P 44,000 P 4,500 700 32,000 3,500 C 500 4,000 1,000 9. How much of the joint cost should be allocated to the joint products? PRODUCT A B PRODUCED a, P 35,000 b. P 36,000 CP 37,000 d. P 39,000
Michelle Company produces joint Products A and B from a process that also yields a by-product Y. The by-product require additional processing before it can be sold. The cost assigned to the by-product is its market value minus additional costs incurred after split-off. Information concerning a batch produced in January, 2016 at a joint cost of P40,000 is as follows: UNITS MARKET VALUE COSTS AFTER SPLIT-OFF 800 P 44,000 P 4,500 700 32,000 3,500 C 500 4,000 1,000 9. How much of the joint cost should be allocated to the joint products? PRODUCT A B PRODUCED a, P 35,000 b. P 36,000 CP 37,000 d. P 39,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:1.
Michelle Company produces joint Products A and B from a process that also yields a
by-product Y. The by-product require additional processing before it can be sold.
The cost assigned to the by-product is its market value minus additional costs incurred
after split-off. Information concerning a batch produced in January, 2016 at a joint
cost of P40,000, is as follows:
UNITS
MARKET
VALUE
COSTS AFTER
SPLIT-OFF
P 44,000
P 4,500
32,000
3,500
C
500
4,000
1,000
19. How much of the joint cost should be allocated to the joint products?
a, P 35,000
b. P 36,000
C P 37,000
d. P 39,000
PRODUCT
A
B
PRODUCED
800
700
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