P12-3 Chicago Company produces products A, B, C, and D. The joint processing cost forAugust 2015 production cycle was to P240,000.No. of unitsproduced18,000WeightfactorJointPrice atproductssplit-offA1.50P42.0060,0001.30P36.0030,0001.20P18.0012,0000.75P12.00Required: Allocate the joint costs to four products using the following method:а.Physical outputWeighted averageSales value at split-off pointb.C.

Total joint processing cost=240000 In physical output method:- Total units…

P12-3 Chicago Company produces products A, B, C, and D. The joint processing cost for August 2015 production cycle was to P240,000. Weight factor Joint No. of units Price at produced 18,000 products split-off A 1.50 P42.00 60,000 1.30 P36.00 30,000 1.20 P18.00 12,000 0.75 P12.00 Required: Allocate the joint costs to four products using the following method- a. Physical output Weighted average Sales value at split-off point b. C.

P12-3 Chicago Company produces products A, B, C, and D. The joint processing cost for August 2015 production cycle was to P240,000. Weight factor Joint No. of units Price at produced 18,000 products split-off A 1.50 P42.00 60,000 1.30 P36.00 30,000 1.20 P18.00 12,000 0.75 P12.00 Required: Allocate the joint costs to four products using the following method- a. Physical output Weighted average Sales value at split-off point b. C.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 8-4. JOINT COST ALLOCATION - MARKET VALUE METHOD SP Company produces three products: S, I and P, as the result of initial joint processing plus separable processing after the split-off point. Records for July show the following: Total P150,000 S P. Materials used 170,000 Joint processing cost Further processing costs Units produced P50,000 6,000 4,000 P 50.00 P80,000 12,000 P70,000 6,250 Units sold 9,000 4,250 Unit sales price P 37.50 P 40.00
P12-6 Tacoma Corporation manufactures three different products, R, T, and W from a basic processing operation. During the period, Tacoma incurred total basic processing costs of P480,000 and produced a combined total of 16,000 units. The processing costs are allocated to three products in proportion to the relative units produced. 298 INTEGRATED COST ACCOUNTING: Principles and Applications Scanned with CamScanner The breakdown of units produced by product and the corresponding selling prices ano the basic processing operation are summarized below: W Total T 16,000 Units produced Selling price per unit (basic) 7,000 P70 5,000 P50 4,000 P40 Tacoma has an option to refine the three products after basic processing operations to be able to sell them at higher prices. The costs to refine the products are shows below. Note that the fixed cost of the refining operation will not be incurred if the products are not refined. T W R Variable cost per metric ton P9.00 P8.00 P5.00 Total fixed cost…
BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000, Other information are as follows: Units produced (20.000; 30,000; 5.000 and 5.000): Unit sold (18.000; 25,000: 5,000 and 5.000): Final unit selling prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs (P150,000: P210,00O; P5,000 and P4,000): Selling and Administrative expenses (P15.000; P21,000; P500 and P400): Desired profit on C and D (P2.000 and P1.500). If the entity uses average unit costs method in joint products and the reversal costs method in by products, what is the total unit cost of Product B?* P10.42 P10.49 P10.92 P11.00
61. Fundador Inc. makes two products, Wet and Dry, from a joint operating process. For the month of May 2021, the total joint costs of processing was P120,000 and the costs of further processing after the point of split-off, as well as other relevant data, are as follows: a. • P60,000 b. • P66,000 c. • P72,000 d. • P80,000
Deming & Sons manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows. Units Product Produced 54,600 39,000 W-10 W-20 W-30 W-40 Product 31, 200 31, 200 156,000 W-10 W-20 W-30 W-40 Sales Value at Split-Off $324,000 279,000 189,000 144,000 $936,000 Required: Assuming that total joint costs of $327,600 were allocated using the physical quantities method, what joint costs were allocated to each product? (Do not round intermediate calculations.) Joint Costs Allocated If Processed Further S 114,300 $ 91,800 $ 73,800 $ 73,800 Additional Costs $ 35,000 27,900 18,900 11,700 $ 93,500 Sales Values $ 355,000 324,000 234,000 156,000 $1,069,000
P12-4 Spain produces product AB from a process that also yields the by-product C. Spain provided the following information for the most recent fiscal year: Ending inventory Units Units sold produced 3,000 1,000 4,000 600 AB 2,400 600 400 3,000 1,000 P60 Unit selling price of AB Unit selling price of C (net of selling costs) Total manufacturing costs P10 Direct materials P20,000 Direct labor 30,000 P100,000 P30,000 Overhead 50,000 Selling and administrative expenses Required: Compute the gross margin and net income of Spain if: : a. net revenue from by-product is treated as additional revenue b. net revenue from by-product is treated as deduction from cost of goods sold C. net revenue from by-product is treated as other income d.. net revenue from by-product is treated as a deduction from total manufacturing cost · е. by-product is recognized at net realizable value
Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-8, 9) The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $193,000. Additional information follows. If Processed Further Product Units Produced 88,000 64,000 28,000 Sales Value at Split-off $280, 000 250,000 190,000 Sales Values Additional Costs $370, 000 310, о00 280,000 KA $58,000 46,000 34,000 KB KC After the putblication of recent sclentific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $247,800 for every 28,000 units produced. Requlred: a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? b. Which, if either, product would you recommend Kyle Company sell at split-off? Complete this questlon by entering your answers In the…
Exercise 11-47 (Algo) Net Realizable Value Method (LO 11-3) Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows: If Processed Further Sales Value at Additional Product Chem-1 Chem-2 Units Produced 291,000 Split-Off Costs Sales Values $ 223,000 $ 33,000 $ 263,000 179,000 Chem-3 195,000 Chem-4 147,000 812,000 267,000 152,600 249,400 29,700 293,000 25,200 183,000 26,600 273,000 $ 892,000 $ 114,500 $ 1,012,000 Required: Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May? Note: Round percentages to 2 decimals. Round your final answers to the nearest whole dollar amounts. Product NRV at Split- Off Joint Costs Allocated Chem-1 Chem-2 Chem-3 Chem-4
BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200.000. Other information are as follows: Units produced (20,000: 30.000: 5.000 and 5,000): Unit sold (18,000; 25.000; 5,000 and 5,000): Final unit selling prices (P25.00; P20.00: P2.00 and P1.50); Further processing costs (P150.000: P210.000: P5,000 and P4,000); Selling and Administrative expenses (P15,000: P21.000: P500 and P400): Desired profit on C and D (P2.000 and P1.500). If the entity uses average unit costs method in joint products, the reversal costs method in by products and there are no inventory on hand, what is the total net profit? P432,836 O P438,300 P438,589 P439,026
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Batches Incorporated produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $95,000 was as follows: L M N Total Separable Processing cost $ 12,000 $ 29,000 $ 8,000 $ 49,000 Units Produced 2,000 4,500 5,100 11,600 Sales Value (after additional processing) $ 68,000 $ 60,000 $ 19,000 $ 147,000 The amount of joint costs allocated to product M using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):