NUBD Co. produces three supplemental food products simultaneously through a refining process costing P93,000. The joint products, Alpha and Beta, have a final selling price of P4 per pound and P 10 per pound, respectively, after additional processing costs of P2 per pound of each product incurred after the split-off point. Delta, a by-product, is sold at the split-off point for P 3 per pound. 10,000 pounds of Alpha, a popular but relatively rare grain supplement having a caloric value of4,400 calories per pound. 5,000 pounds of Beta, a flavoring material high in carbohydrates with a caloric value of 11,200 calories per pound. 1,000 pounds ofDelta, uses as a cattle feed supplement with a caloric value of 1,000 calories per pound. Alpha Beta Delta Assumed NUBD inventories Delta, the by-product, and deducts its market value from the joint costs.
NUBD Co. produces three supplemental food products simultaneously through a refining process costing P93,000. The joint products, Alpha and Beta, have a final selling price of P4 per pound and P 10 per pound, respectively, after additional processing costs of P2 per pound of each product incurred after the split-off point. Delta, a by-product, is sold at the split-off point for P 3 per pound. 10,000 pounds of Alpha, a popular but relatively rare grain supplement having a caloric value of4,400 calories per pound. 5,000 pounds of Beta, a flavoring material high in carbohydrates with a caloric value of 11,200 calories per pound. 1,000 pounds ofDelta, uses as a cattle feed supplement with a caloric value of 1,000 calories per pound. Alpha Beta Delta Assumed NUBD inventories Delta, the by-product, and deducts its market value from the joint costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The joint cost to be allocated to Alpha using the net realizable value method is
Transcribed Image Text:NUBD Co. produces three supplemental food producs simultaneously through a refining process
costing P93,000.
The joint products, Alpha and Beta, have a final selling price of P4 per pound and P 10 per pound,
respectively, after additional processing costs of P2 per pound of each product incurred after the
split-off point. Delta, a by-product, is sold at the split-off point for P3 per pound.
10,000 pounds of Alpha, a popular but relatively rare grain
supplement having a caloric value of 4,400 calories per pound.
5,000 pounds of Beta, a flavoring material high in carbohydrates with
a caloric value of 11,200 calories per pound.
1,000 po unds of Delta, uses as a cattle feed supplement with a caloric
value of 1,000 calories per pound.
Alpha
Beta
Delta
Assumed NUBD inventories Delta, the by-product, and deducts its market value from the joint
costs.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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